FIRST ASIAN BANK

Sun Yu, general manager at Bank of China London Branch and CEO at Bank of China (UK) Limited, said the bank was proud to become the first Chinese and Asian bank to directly participate in the gold auction.

He said: "Despite being the world's largest gold producer and consumer, China has never played a major role in the global gold fixing."

The bank will reinforce the connection between the Chinese domestic market and overseas markets, making the international gold price better reflect the supply and demand in China, as well as promoting the internationalization of the Chinese gold market, he added.

The Bank of China has been actively participating in the gold trading business in London for over 40 years. Its London branch was the first overseas branch and joined the LBMA as an initial member in 1987. It became the only Chinese bank with membership for the subsequent 20 years.

Products based on the LBMA gold price will now be developed and delivered, reducing clients' cost and providing more transparency to the transactional process, analysts said.