• Published on 12 November 2024
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UOB and Shanghai Gold Exchange sign MOU to enhance cross-border cooperation

UOB has signed a memorandum of understanding (MOU) with Shanghai Gold Exchange (SGE) in Shanghai.

The MOU is a part of the bilateral cooperation initiatives agreed by the People’s Bank of China and Monetary Authority of Singapore at the 20th Joint Council for Bilateral Cooperation (JCBC) meeting.

China is the world’s largest producer and processor of gold, and the top manufacturer of gold products. SGE is the world's largest exchange for physical gold trading.

There is rising demand for gold in Southeast Asia due to the rising middle class and investors’ interest in gold as an asset class, according to the Singapore Bullion Market Association. Under the MOU, UOB and SGE aim to deepen collaboration to connect China’s gold supply chain – including its strong refining and jewellery manufacturing capacity – to fast-growing ASEAN markets. This will contribute to the development of the ASEAN gold market.

Wee Ee Cheong, deputy chairman and CEO of UOB said, “UOB is the leading bank in Southeast Asia operating in the gold business and a member of SGE’s International Board. With this MOU, we will strengthen cooperation with SGE in proprietary trading, physical delivery and international bullion products. As the only bank offering physical gold products in Singapore, coupled with our extensive ASEAN footprint, UOB is well positioned to connect our customers to gold markets both across the region and within Greater China.”

Yu Wenjian, chairman of Shanghai Gold Exchange said, “This year marks the 10th anniversary of SGE’s International Board. We will continually deepen our commitment to internationalising our business and launching new business models. Working together with UOB to enhance the service system of our International Board, we are well placed to provide a better financial infrastructure to advance China’s gold market and ensure its continual liberalisation.”

Moving forward, the parties will forge greater cross-border collaboration in gold supply chains to enhance connectivity between the Chinese and ASEAN gold markets and benefit businesses along the gold supply chain.

Re-disseminated by The Asian Banker