United Overseas Bank (UOB) has signed a memorandum of understanding (MOU) with Shanghai Gold Exchange (SGE), the world’s largest exchange for physical gold trading, on Nov 11. The MOU is a part of the bilateral cooperation initiatives agreed upon by the People’s Bank of China and the Monetary Authority of Singapore (MAS) at the 20th Joint Council for Bilateral Cooperation (JCBC) meeting held on the same day.
Under the MOU, UOB and SGE aim to connect China’s gold supply chain, which includes its refining and jewellery manufacturing capacity to fast-growing Asean markets, thereby contributing to the development of the gold market in the region.
Referring to a report by the Singapore Bullion Market Association, UOB notes that there is an increasing demand for gold in Southeast Asia with a rising middle-class population and investors’ interest in gold as an asset class.
“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,” says Wee Ee Cheong, deputy chairman and CEO of UOB.
“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,” he adds.
"This year marks the 10th anniversary of SGE International Board. We will continually deepen internationalisation and implementing new business models. We will work together with UOB to further enhance the service system of the International Board to better support high-level opening up of China’s gold market as financial infrastructure," says Yu Wenjian, chairman of the SGE.
