China's bullion market is a model for globe, says WGC

China's gold market is one of the most transparent and regulated on the globe and should be the model of what the rest of the world should look up to, said industry experts.

As the newly appointed CEO of the World Gold Council in February, David Tait said what impressed him during a China tour was how regulated and transparent the market was in China.

Commenting on the Shanghai Gold Exchange's effort to promote renminbi-dominated gold benchmark prices, Tait said he believed the Shanghai Gold Exchange and the China market setting the standard for the world to establish further transparency and further benchmark pricing of a high standard.

"I think the going out is an excellent direction for the Shanghai Gold Exchange to do. In benchmark price or in the context of the world competition, it is what they really need to be doing," Tait said. "It already has a good reputation and the amount of growth the Shanghai Gold Exchange exhibited is quite amazing. We are hoping to work collaboratively for fully going forward and to advise as much as we can.

"I think the Chinese economy is certainly going to get stronger, and the demand for gold within that economy is going to grow."

Talking about how to make the Chinese gold industry more influential on a global scale, he said China indeed has a lot to offer to the rest of the world and suggested the country should constantly further liberalize the market, be more open to the rest of the world, allow more participation and engage with participants as much as it can.

The World Gold Council is also looking for deeper collaboration with China, and it has recently signed a strategic collaboration memorandum with Industrial and Commercial Bank of China on gold-related business.

"In the future, ICBC will actively implement its deep collaboration strategy with the World Gold Council, leading the upgrade in service in the Chinese gold market and providing a more open and professional business environment," said Tan Jiong, senior executive vice-president of the bank.