China has opened her first precious metals exchange in Yongxing County, China's 'Silver City'.
The first four products to be listed will be Bismuth, indium, tellurium and importantly silver.
The new Hunan South Rare and Precious Metals Exchange, based in the capital of Yongxing County, is china's hope to make an impact in the international precious metals trading markets.
The launch, costing just over 40 million dollars (around 260 million yuan), will have long term electronic transactions as well as spot trading, deferred spot transactions on up to 18 precious metals.
The usual financial consultations, pricing and other information will be available as well as market research, supply and demand etc.
Cao Minghui, the exchange general manager stated during the opening ceremony, "The goal of the exchange is to achieve a total trading volume of 1 trillion yuan (US$155 billion) by the end of 2015. By then the exchange will contribute 1 billion yuan in taxes per year,"
It is estimated that from 800 to 1,000 companies from Shenzhen, Guangzhou and Yongxing provinces will start trading on the exchange when it opens. "We also hope the exchange will give Yongxing County a voice in the global precious metal market," Cao went on.
"By launching such an exchange, China can solve the problems that have long plagued its precious metals industry, such as high logistics costs and lack of capital." Zhang Xiaojun, the director of the Precious Metals Legal Commission, who provided legal advice to the exchange, told the Global Times.
Yongxing County is regarded as the silver capital of China due to its abundant silver reserves. It account for one fourth of China's total silver production, producing 2,050 metric tons of silver, 7.1 tonnes of gold, 4,300 tonnes of bismuth and 2.6 tonnes of platinum in 2010.