SHANGHAI(BullionStreet): In yet another attempt to establish itself as a major gold market, China extended trading hours for SHFE gold and silver futures to close the gap between domestic and international markets.

Shanghai Futures Exchange (SHFE) has released draft rules to allow extended trading sessions for its futures contracts, with gold and silver the most likely to be chosen for the pilot scheme.

SHFE now allows trading from 9.00am to 11.30am and from 1.30pm to 3.00pm Chinese time. The extended trading hours would close the gap between domestic and international markets.

According to the draft rules, which are open to public comment, the SHFE said extended trading hours would fall outside those regular trading times.

It did not elabourate on what times the extended trading hours would be.

A lack of integration between Chinese and overseas exchanges limits the influence of China - the world’s top buyer of commodities - on international commodities prices, which therefore often fail to accurately reflect underlying Chinese demand.

The exchange currently offers nine futures contracts, including copper, aluminium, rubber, fuel oil, gold, rebar and zinc.