DMCC, (‘Dubai Multi Commodities Centre’), the Government authority on trade, enterprise and commodities in Dubai, announced today its signing of a Memorandum of Understanding (MoU) with the leading Chinese silver producer China Silver Group Limited (“China Silver Group”; 815.HK) in Shanghai.
The purpose of the memorandum is to explore how DMCC and China Silver Group can collaborate to establish a central registry for a commodity ownership and financing platform in China’s Free Trade Zones, while encouraging knowledge sharing between the two stakeholders for the benefit of future bilateral trade initiatives.
Gautam Sashittal, Chief Executive Officer of DMCC, said:
“At DMCC, we are passionate about building and delivering new marketplaces which is why leading this collaboration with China Silver Group marks a natural next step in how we seek to connect and modernise markets to increase cross-border efficiencies.
“Today’s Memorandum of Understanding also reinforces the strong trading relations between China and Dubai, underpinned by the One Belt One Road and DMCC’s continued focus on boosting commodities trade along the West to East corridor.”
Richard Sung, Chief Executive Officer of China Silver Group, added:
“This important initiative 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 offering across a broad range of commodities products in China’s Free Trade Zones.
“It follows China Silver’s strategic acquisition of Shanghai White Platinum & Silver Exchange which is licensed to operate in the Shanghai Free Trade Zone to meet the needs of both Chinese and international players and the Chinese central government’s policy to develop benchmark pricing”.
The MoU will also seek to develop world class infrastructure to support commodity business activities in China’s Free Trade Zones by drawing upon the capabilities of DMCC’s Free Zone, Tradeflow platform and Dubai Gold and Commodities Exchange (DGCX). In doing so, the collaboration aims to connect a wide range of financial institutions and physical traders to trade with confidence.