Introduction
It refers to gold transaction conducted by Bank of China in Shanghai Gold Exchange on behalf of domestic legal person without gold membership, based on Bank of China's financial membership in Shanghai Gold Exchange. Bank of China collects commission for its agency service, without any responsibility for profit gaining or loss suffering during the trade.
Target Customers
Domestic legal person without gold membership
Currency
RMB
Term
Spot, T+D
Trading Unit
The minimum unit of agency gold trade is 1000 g of standard gold (with the purity of 99.99 or 99.95), and the trading unit should be the integral multiple of 1000 g standard gold (with the purity of 99.99 or 99.95). If the customer needs to take delivery of gold after transaction, the minimum should be 1000 g and 3000 g of standard gold respectively. The minimum unit of agency platinum purchasing is 1000 g, and the trading unit should be the integral multiple of 1000 g. As prescribed by the Exchange, platinum can only be bought rather than sold, and the minimum delivery is 3000 g. The delivery amount of silver should be integral multiple of 15 kg.
Trading Hours
Currently, the transaction hours in Shanghai Gold Exchange are temporarily scheduled as follows: the opening hours of the Exchange are divided into daytime trading hours (gold, silver 10:00 - 11:30, 13:30 - 15:30, platinum 10:00 - 11:30, 13:30 - 15:00) and night trading hours (all varieties 21:00 - 2:30 a.m.), without night market trading on Friday.
Price
The highest transaction fee of gold agency trade is 1.45‰ of the total trading amount, in which 0.55‰ is collected by the Exchange, and the remaining 0.9‰ is collected by Bank of China; the highest transaction fee of platinum agency trade is 1.6‰ of the total trading amount, in which 0.6‰ is collected by the Exchange, and the remaining 1‰ is collected by Bank of China; the highest transaction fee of silver agency trade is 1.2‰ of the total trading amount, in which 0.3‰ is collected by the Exchange, and the remaining 0.9‰ is collected by Bank of China.
Other Charges:
Insurance and freight: RMB 0.012/g
Delivery from warehouse: RMB 2/kg
Warehousing: RMB 1.8/kg.day.
Process
I. Agency of account opening
1. The account-opening bank accepts the consignment of corporate legal person without gold membership of Shanghai Gold Exchange, and acts as the agency in trading the precious metal in Shanghai Gold Exchange. The account–opening bank collects commission for its agency service;
2. The customer and the account-opening bank should sign the Agreement on Precious Metal Agency Trading, Commission Charging Standard of the Agency. The customer should fill the Registration Form of Account-Opening for Gold Exchange, and Bank of China should, as the agency for the customer, apply for and acquire the customer code of Gold Exchange;
3. The account-opening bank should open a "settlement account for agency trading" for customers. This account is used for fund allocation and commission in precious metal trading.
II. Transaction
1. Agency business of precious metal purchasing
When entrusting Bank of China in purchasing precious metal, the customer should deposit sufficient money in the margin account of Shanghai Gold Exchange; the customer can supplement funds via remittance of Bank of China when the balance is insufficient.
2. Agency business of precious metal selling
① The amount of precious metal sold by the customer in a single day may not exceed the settlement warehouse balance of the Exchange.
② The customer can entrust Bank of China in selling precious metal via manual entrust or self-service online entrust.
③ After the confirmation of transaction, Bank of China will draw commission for transaction from customer's special account.
④ Process of unsuccessful transaction: On the very day of customer's effective consignment, the unconcluded part of the transaction will automatically become invalid after Shanghai Gold Exchange is closed.
III. Delivery
1. The customer faxes or delivers the Application Form of Precious Metal Delivery with the signature of the authorized person to the account-opening bank for gold delivery.
2. Upon the application for delivery, the Gold Exchange should send the settlement warehouse an order of delivery-from-warehouse. Within the valid period of delivery order (generally one week), the customer should go to cashier's department of Bank of China to settle the delivery, with the ID card, password for goods picking, proxy, delivery order (fax copy), application letter for delivery-from-warehouse of Gold Exchange (3rd page) (Appendix VIII).
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