The Shanghai Gold Exchange has made a strategic move to bolster the Chinese mainland's role in the global bullion trade by launching two new gold contracts and opening an offshore certified bullion vault in Hong Kong.

According to the SGE announcement on Thursday, the move aims to better open up the gold market, diversify the gold product trading system and optimize delivery services. The initiative is seen boosting the Chinese mainland's influence in global commodity and currency markets while reinforcing Hong Kong's status as an international financial center.

The SGE said the two contracts of iPAu99.99HK and iPAu99.5HK, covering different gold purities, will facilitate spot, forward and swap trading of the precious metal starting on Thursday.

On the first day, multiple domestic and foreign institutions successfully completed transactions, the exchange said.

Trading will be conducted in renminbi, with settlement via cash or physical delivery — through the first international board designated warehouse operated by Bank of China (Hong Kong) in the city.

To encourage trading, the SGE is waiving storage fees, load-in fees and load-out fees for international members and Hong Kong-certified vault customers from June 26 through the end of this year.

"The coordinated development of the Shanghai and Hong Kong gold markets has far-reaching significance for helping renminbi-denominated 'Shanghai Gold' to go global, strengthening the pricing and reserve functions of the renminbi, and consolidating and enhancing Hong Kong's central position in the regional gold market," BOCHK said in a statement on Thursday.

As a Class A international member of the Shanghai Gold Exchange International Board, a margin depository bank and a designated warehouse, BOCHK will work with the SGE to promote infrastructure, product innovation as well as green and low-carbon development in the gold market, and bring more asset choices to investors.

The bank will also actively leverage Bank of China Group's advantages to create more gold products and services that are in line with international standards, contribute to building Hong Kong into an international gold trading center, and promote the construction of a commodity trading ecosystem.

Established by the People's Bank of China and approved by the State Council in 2002, the SGE is the major exchange on the Chinese mainland engaged in the trading of precious metals such as gold, silver and platinum.