Top Chinese banks as well as Standard Chartered and ANZ will join the latest yuan-dominated gold benchmark, representing China's biggest step towards becoming metal's price setter, according to Reuters.

China has thwarted its dollar price investment in overseas transactions, believing that its role as the world's top producer, importer and consumer of gold, qualifies it as the price setter for gold.

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However, the yuan gold fix, which is expected to officially launch on April 19, does not pose direct threat to London's and New York's gold pricing. Furthermore, it could give Asia more power especially if China's currency becomes widely convertible.

Price for the Chinese benchmark will come from a 1 kg-contract to be traded by the Shanghai Gold Exchange's 18 members, who will serve as the central counterparty.

Four of China's state-owned banks, namely, Agricultural Bank of China, Bank of China, China Construction Bank, and Industrial and Commercial bank of China, are to be included on the price-setting process.

Other banks such as Bank of Communications, China Minsheng Banking Corp, Industrial Bank Co, Shanghai Pudong Development Bank, Ping An Bank and Shanghai Bank are also expected to join.

The benchmark price will be quoted as yuan per gram. Sessions will be scheduled twice a day based on a few minutes of trading activities.

Meanwhile, the support received by the yuan benchmark from international banks will be essential for yuan's global use. However, the country is having a difficult time convincing them to sign up because of benchmarks sensitivity amid scrutiny by regulators.

TagsChinese banks, Standard Chartered, ANZ, yuan gold fix, Shanghai gold exchange