First Offshore RMB Gold Contract Launched In Hong Kong
Thursday, October 20, 2011
Hong Kong’s Chinese Gold & Silver Exchange Society (CGSE) launched
the world’s first offshore renminbi-denominated spot gold contract to investors
on October 17, 2011.
Haywood Cheung, President of the CGSE, disclosed that the landmark product
has been on a trial run since May 16 this year, and the roll-out of the new
contract extending the quote and settlement currency from HKD to RMB marks a
big step forward by the CGSE.
He believes that “the world’s first offshore RMB-denominated gold
contract can truly help promote the internationalization of the RMB, and attract
overseas and local gold dealers to engage in arbitrage activities to capitalize
on price spreads". "In addition, this product offers investors a new-found opportunity
to participate in leveraged trading of RMB,” Cheung said.
Institutional investors and retail investors may engage in trading of the RMB
gold contract by opening an account with CGSE’s AA grade members. To effectively
mitigate the price risks, it was said that they can choose the method of final
settlement for their trades either through the RMB-denominated gold contract
or spot gold delivery. |
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