China launched its yuan-denominated gold benchmark on April 19 in Shanghai as it seeks to secure more sway in the pricing of the precious metal.

The Shanghai Gold Benchmark Price (code: SHAU), is the quote for trading of 1kg, 99.99 percent purity bullion, denominated in the Chinese yuan and derived from multiple rounds of trading.

The benchmark was set at 257.97 yuan per gram on April 19, the Shanghai Gold Exchange (SGE) said in a statement.

The benchmark also lays the foundation for shifting bullion trading in Shanghai from mostly spot to derivatives to increase the appeal of yuan-denominated bullion trading as financial instruments for both domestic and global investors.

SGE Chairman Jiao Jinpu said the launch of the benchmark offers the opportunity to develop bullion trading in China’s financial markets and encourage more participation by global investors.

Standard Chartered Bank (China) Ltd. and ANZ Bank (China) Ltd. are among 12 fixing members for the benchmark trading. The other ten members are domestic banks.

The trading margin is set at 6 percent and transaction fees are exempted until June 30 this year.