HSBC joins Shanghai Futures Exchange

HSBC has won approval to join the Shanghai Futures Exchange, becoming the first foreign bank to gain access to China’s gold futures market.

The announcement came on Friday, a day when the gold price hit an all-time high of $1,632.30 per troy ounce as investors panicked about the continued stalemate over negotiations to raise the US debt ceiling ahead of the August 2 deadline.

David Liao, managing director, treasurer and head of global markets at HSBC China, said the bank will initially focus on gold futures trading. “China is an important producer, user and investor of gold and we look forward to playing a greater contributing role...