HSBC became the first overseas bank to start gold trading as a member of the Shanghai Gold Exchange yesterday after getting approval from the China Banking Regulatory Commission, the regulator.

"HSBC is pleased to be the first foreign bank to conduct a transaction on the Shanghai Gold Exchange," said Richard Yorke, group general manager, president and chief executive officer of HSBC China. "The opening of the gold market to foreign banks' participation is another exciting development for China's financial markets."

Yorke believed that HSBC's trading at the exchange "will enable us to share our international experience and expand our participation in China's financial markets as well as our services scope."

The bourse is the sole exchange for gold and platinum trading on China's mainland.

HSBC and Standard Chartered were approved as the gold exchange's first two overseas members.