Shanghai gears up for the big league

SHANGHAI: With gold gaining a greater role in China's foreign exchange portfolio, experts feel that it is only a matter of time before Shanghai becomes a major gold trading market.

It has already got off to a sound beginning by opening the Shanghai Gold Exchange in October 2002. Around 4,220.7 tons of gold was traded at the bourse in 2008, worth 822.9 billion yuan, up 134.19 percent and 164.15 percent year-on-year, respectively, making it the world's top exchange for spot gold trading.

"Although Shanghai still lags behind other gold trade centers like Hong Kong, New York and London in terms of global influence, China's robust economic growth and the city's plans to turn itself into a global financial center will give it an added advantage," said Albert Cheng, director of the World Gold Council's Far East Division.