Singapore 19/04/2016 - The Dubai Multi Commodities Centre (DMCC) and China Silver Group have signed a memorandum of understanding (MoU) on Monday aimed at driving commodities trade in China’s Free Trade Zones (FTZ), the companies announced on the same day.
The MoU provides for the companies to explore the establishing of “a central registry for commodity ownership and financing platform in China’s FTZ,” the companies said in a joint statement.
The MoU will also seek to develop world class infrastructure to support commodity business activities in China’s FTZ by drawing upon the capabilities of DMCC’s Free Zone, Tradeflow platform and Dubai Gold and Commodities Exchange, the statement added.
“In doing so, the collaboration aims to connect a wide range of financial institutions and physical traders to trade with confidence,” it said.
The pact underpins China Silver’s strategy to become the industry leader and core provider of metals-related warehousing logistics, warrant and financing services via a highly-secured and fully-integrated service offered across a broad range of commodities products in China’s FTZ, said Richard Sung, CEO of China Silver.
In February, the Hong Kong-listed China Silver had acquired Shanghai White Platinum & Silver Exchange - also known as Shanghai Huatong - which is one of the largest spot exchanges for silver trading in China and licensed to operate in the Shanghai Free Trade Zone.
DMCC is a Dubai government entity tasked with enhancing commodity trade flows through Dubai.