The Dubai Multi Commodities Centre  (DMCC) -- which is the Government authority on trade, enterprise and commodities in Dubai --  announced last week that it has signed a Memorandum of Understanding (MoU) with the China Silver Group Limited, a  leading Chinese silver producer, in Shanghai.

The MoU seeks to explore areas and ways of collaboration between the DMCC and China Silver Group in order to “establish a central registry for a commodity ownership and financing platform in China’s Free Trade Zones”. Along with this, the MoU also envisages   “knowledge sharing between the two stakeholders for the benefit of future bilateral trade initiatives”, the DMCC explained.

Gautam Sashittal, Chief Executive Officer of DMCC, commented: “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.”

 Richard Sung, Chief Executive Officer of China Silver Group, said: “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.” 

Sung added that this MoU follows on the heels of  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 DMCC further stated that 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)”.