Chinese banks are likely to participate in a new electronic daily gold pricing mechanism that is set to launch in March.

The London Bullion Market Association announced on Monday that the new gold pricing mechanism may increase the number of participants, including more LBMA members.

Bank of China Co Ltd, China Construction Bank Co Ltd, and Industrial and Commercial Bank of China Co Ltd are members of the LBMA.

The new pricing mechanism, the LBMA Gold Price, will replace the London Gold Fix, the telephone price-setting, twice-daily conference calls between a group of banks, which have been operating since September 1919.

The London Gold Fix has four participants, which are Bank of Nova Scotia-ScotiaMocatta, Barclays Bank PLC, HSBC Bank USA., and Societe Generale SA.

While the London Gold Fix is used as a global gold price benchmark, China's gold price is set through trading at the Shanghai Gold Exchange.

Analysts said the LMBA Gold Price with more participants may become more transparent.