UOB and Shanghai Gold Exchange Strengthen Cross-Border Cooperation

Singapore, 11 November 2024 - UOB has signed a Memorandum of Understanding (MOU) with Shanghai Gold Exchange (SGE) in Shanghai. The MOU is part of the bilateral cooperation initiatives agreed by the People’s Bank of China (PBC) and Monetary Authority of Singapore during the 20th Joint Council for Bilateral Cooperation (JCBC) meeting.

JCBC serves as the apex bilateral platform to review collaboration between Singapore and China. This year, Singapore convened the 20th JCBC meeting on 11 November 2024, co-chaired by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong and Vice Premier Ding Xuexiang from China.

China remains a key player in the global gold market, functioning as the largest producer and importer of gold, alongside being the top manufacturer of gold products. Demand for gold in ASEAN has surged, driven by increasing spending power and investor interest. The MOU encourages both parties to engage actively in the Belt and Road initiative while fostering strategic cooperation within ASEAN's gold markets, capitalizing on China's superior gold supply chain.

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 enhance cooperation with SGE in proprietary trading, physical delivery, and international bullion products. As the only bank offering physical gold products in Singapore, with our extensive ASEAN network, UOB can effectively connect customers to gold markets regionally and within China.”

Mr. Yu Wenjian, Chairman of SGE, added, “This year marks the 10th anniversary of SGE International Board. We will continually deepen internationalization and implement a new business model to enhance our service system and support the high-level opening of China’s gold market.”

SGE was established in October 2002 by PBC, with approvals from the State Council, and has held the title of the world’s largest physical gold exchange for over a decade. UOB has actively participated in SGE trading and initiatives like the Gold Road project, facilitating gold imports quoted and settled in RMB.

In summary, both parties aim to enhance financial collaboration across borders, offering more business opportunities in the gold supply chain, and fostering stronger market connectivity between global gold markets and China’s precious metals sector.