TOP Chinese banks and gold miners, along with the world’s biggest jewelry retailer, will be among 18 members taking part in the nation’s new yuan-denominated gold benchmark, a source familiar with the matter said.

    Two foreign banks will also join the benchmark-setting process, when it launches Tuesday next week, marking China’s biggest step to become a price-setter for gold.

    As the world’s top producer, importer and consumer of gold, China has baulked at having to depend on a U.S. dollar price in international transactions and believes its market weight should entitle it to set the price of gold.

    A yuan gold fix is not expected to pose an immediate threat to the gold pricing dominance of London and New York, but it could ultimately give Asia more power, particularly if the Chinese currency becomes fully convertible.

    Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications are among the 10 Chinese banks that will participate, said the source.

    Two foreign banks would also join, the source said, without naming them.

    Chow Tai Fook, the world’s biggest jewelry retailer, Swiss trading house MKS, Chinese miners China National Gold Group and Shandong Gold Group will also be members, the source said.

    MKS confirmed it was taking part, while Chow Tai Fook declined to comment.

    The other companies were not immediately available for comment.

    The Chinese benchmark price will be derived from a 1 kg-contract to be traded on the Shanghai Gold Exchange, which will act as the central counterparty.

    The price, to be quoted in yuan per gram, will be set twice a day based on a few minutes of trading in each session. (SD-Agencies)