Singapore-based 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 this week.
Under the MOU, UOB and SGE aim to deepen collaboration to connect China’s gold supply chain – including its refining and jewellery manufacturing capacity – to fast-growing Asean markets. It is hope this will contribute to the development of the Asean gold market.
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.
Wee Ee Cheong, deputy chairman and CEO, UOB, said, “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, Shanghai Gold Exchange, added: “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 intend to 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, according to a statement by UOB.
