The Dubai Gold and Commodities Exchange, DGCX, today signed a Memorandum of Understanding, MoU, with the Chinese Gold and Silver Exchange Society, CGSE, in Hong Kong.

As leading markets for precious metals trading, this collaboration will enable both DGCX and CGSE to deepen their penetration into emerging markets and further develop the precious metals markets in Asia and the MENA region.

Both CGSE and DGCX serve their domestic and regional client bases throughout Hong Kong, North East Asia, the GCC and the Indian Sub-continent, and the agreement recognises the significant opportunities to meet the evolving needs of investors in China and the Indian Sub-continent, two of the world’s largest consumers of precious metals.

The MoU will enable CGSE and DGCX to cooperate within the precious metals markets with a view to generating greater benefits for their market participants. The MoU will also pave the way for enhancing the positions of both exchanges as benchmark reference pricing venues, and further establish them as prime centres by connecting Asia and the Middle East.

Gautam Sashittal, Chief Executive Officer of DMCC and Board Director of DGCX, said, "At DMCC, the parent company of DGCX, we have successfully established ourselves as Dubai’s global gateway for trade with a strong focus on commodities, including precious metals. This partnership with CGSE marks a natural next step in achieving our underlying vision which is to connect markets and facilitate more global trade. We look forward to collaborating with the CGSE to further support the economic development agenda of China and the UAE."

Steven Chan Sheung Chi, President of the CGSE, said, "CGSE’s mission is not only to develop its role as China’s offshore hub for precious metals trading but also to strengthen cooperation with ASEAN countries. We have a broad ranging strategy in support of the 'Belt and Road' initiative that satisfies demand in Dubai and that will benefit both parties. As Dubai is on the route of the Belt and Road, we shall work together to develop a proprietary product satisfying both parties’ need."