UOB has signed a Memorandum of Understanding (MOU) with the Shanghai Gold Exchange (SGE) in Shanghai. This agreement is part of the bilateral cooperation initiatives agreed upon by the People’s Bank of China (PBC) and the Monetary Authority of Singapore at the 20th Joint Council for Bilateral Cooperation meeting.
China is a key player in the global gold market, being the largest producer and importer of gold, as well as a top manufacturer of gold products. In recent years, there has been significant growth in gold demand across ASEAN due to increased spending power and investor interest. The MOU aims to enhance strategic cooperation in ASEAN gold markets, leveraging China's robust gold supply chain to connect production capacity with demand, thereby contributing to market development.
Mr. Wee Ee Cheong, Deputy Chairman and CEO of UOB, stated: "UOB is the leading bank in Southeast Asia operating in the gold business and a member of SGE. 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 China."
Mr. Yu Wenjian, Chairman of SGE said: “This year marks the 10th anniversary of SGE International Board. We will continually deepen internationalization and implementing new business model. We will work together with UOB to further enhance the service system of International Board to better support high-level opening up of China’s gold market as the financial infrastructure.”
Established by PBC in October 2002 upon approval by State Council, SGE specializes in precious metals trading and has been recognized as the world's largest physical gold exchange for over ten consecutive years. UOB actively participates in SGE trading activities including initiatives like Gold Road project and physical gold imports quoted and settled in RMB.
The partnership aims at greater cross-border financial collaboration to offer more business opportunities for participants within the gold supply chain. Under this framework, both parties plan to deepen their cooperation within global markets for mutual benefits while enhancing connectivity between China and other regions including Singapore.