Research On Gold Market System Of China

Compared with mature international gold markets, Chinese gold market has following weakness: trading size is limited, transaction is not active, and gold does not fully function as an investment tool. Through this comparation, this paper finds out the causes of China's gold market underdevelopment: First, imperfect market structure; second, transactions tools are not rich; third, the market participants do not fully function; fourth, imperfect regulatory system.Therefore, the author studies major gold markets in the world and Chinese gold market. He advises that first, promote levels of gold markets to form a market system with Shanghai Gold Exchange as core, district trade centers as implement, connecting commercial banks and gold shops; Second, enrich trade tools to upgrade the initiative of suppliers to avoid market risks; third, cultivate market players, especially commercial banks as market makers to enhance liquidity and expand market size; forth, set up a regulatory system of three levels: government, industrial and exchange. It is believed sound regulation is necessary for the stability of gold market.