China hopes to knock off the gold pricing dominance of London and New York and become the price-setter for gold with the launch its new yuan-denominated gold benchmark April 19.

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

The Chinese benchmark price will be derived from a 1 kg-contract to be traded by the 18 members on the Shanghai Gold Exchange (SGE), which will act as the central counter party.

The 18 members of the group setting the price for the precious metal include China’s big four state-owned banks, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank, the SGE said in a statement on its website.

On Wednesday, Standard Chartered and ANZ were announced to be part of the team.

The other members of the group include Bank of Communications, Shanghai Pudong Development Bank, China Minsheng Banking, Industrial Bank, Ping An Bank, Shanghai Bank, Bank of China (Hong Kong), retailers Chow Tai Fook and Lao Feng Xiang, Swiss trading house MKS, Chinese miners China National Gold Group and Shandong Gold Group, according to SGE said.

The benchmark price will be set twice a day based on a few minutes of trading in each session, and will be quoted in yuan per gram,

China needs support from foreign banks to turn the new price into an international benchmark, but it has struggled to get them to sign on. In January, Reuters reported that China had warned foreign banks it could curb their operations in the domestic market if they refuse to participate in the benchmark-setting process.

Standard Chartered and ANZ, the two foreign banks participating in the fix, have gold import licenses in China. HSBC also has an import license but was not named by SGE as one of the participating banks.

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