China is to host platinum trade for the first time beginning on August 13th according to news from Shanghai's gold exchange.

The announcement marks the conclusion of a long-awaited decision, and continues the incremental liberalisation of the closely guarded precious metals market.

China, which imports a quarter of the world's platinum and has been responsible for a huge growth in platinum jewellery demand, has been keen to introduce more markets for farm and metal commodities.

Under the new arrangement trade will last for two hours a day: for an hour at 10:30 in the morning and then again at 1.30 pm.

Although initially volumes will be relatively small the potential for growth in the market means activity is likely to escalate rapidly.

'Platinum trading should become quite active in time, because demand in China is strong,' a domestic trader told Reuters.

Platinum trading was given the go ahead by the People's Bank of China in March, but has been delayed by drafting procedures, membership qualifications and the SARS outbreak.