ScotiaMocatta, the precious metals trading arm of Canada's Bank of Nova Scotia, has been granted membership of the Shanghai Gold Exchange, the bank announced.

“This membership will allow us to trade gold, silver and platinum on behalf of customers having precious metals requirements in China as well as on our own account,” said global head of foreign exchange Barry Wainstein.

"China has a natural market with a vibrant exchange that presents a lot  of opportunity for ScotiaMocatta.”

Local units of HSBC and Standard Chartered were granted membership earlier this year.

China surpassed South Africa as the world's largest gold producer in 2007, and consumer demand for gold in China leapt 26%, to 326 t, according to World Gold Council figures.

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