Shanghai's Gold Exchange to Start Trading Palladium

Source:

"Palladium XPD= is already traded globally and its value has doubled this year"

The Shanghai Gold Exchange is set to launch trading of the precious metal palladium next year, the exchange chairman told a conference on Thursday.

"Palladium will soon be launched," said Shen Xiangrong, chairman of the Shanghai Gold Exchange. "The government approval process is nearing an end."

The launch still needs final approval from China's central bank, he said.

The precious metal may find a rising market in China as demand grows from car manufacturers, who use it as a catalytic converter to reduce toxic emissions from engine exhaust.

China's car production has soared in 2009 and, helped by government subsidies, the Chinese car market overtook the United States as the world's largest earlier this year. China has plenty of room to promote car sales further in 2010, a senior Chinese government official said on Tuesday.

Palladium XPD= is already traded globally and its value has doubled this year, helped by an association with gold XAU=.

Palladium is also popular as jewelry in China.

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