China has invited the world’s top banks and largest gold miners to take part in Shanghai’s new global gold exchange. China has opened the exchange in the hope it can challenge New York and London’s dominance in the trading and pricing of precious metals.

Apparently the Shanghai Gold Exchange has approached the Bank of Nova Scotia, Australia and New Zealand Banking Group, HSBC, Standard Chartered and Standard Bank.

The Chinese are keen to attract both international and domestic institutions to make the exchange as influential as possible

Last year China consumed 1,065.8 tonnes of gold and overtook India as the world’s largest consumer of gold.