Hong Kong Plans to Launch RMB Gold Futures
According to a report by Ming Pao Finance, the Chief Executive of the Hong Kong Special Administrative Region announced that Hong Kong's gold central clearing system will begin trial operations from July 7, with plans to establish RMB-denominated gold futures contracts.
The report states that the system will offer a range of services, including gold storage and settlement for over-the-counter (OTC) market transactions. The first batch of gold storage and the first transaction settlement have already been completed, involving multiple banks and their clients, including mining companies, refiners, jewelry traders, and other investors.
The Chief Executive said that the initial gold deposits and the first transaction settlement have been successfully completed, with participation from several banks and their clients, covering mining companies, refiners, jewelry traders, and other investors. This milestone would not have been achieved without support from the state, as well as close collaboration among the HKSAR government, the Shanghai Gold Exchange, and the board of directors of the Central Settlement Company composed of 11 financial institutions.
The Chief Executive pointed out that in a world marked by geopolitical crises and economic uncertainty, gold is becoming one of the key pillars for liquidity and risk management. The launch of Hong Kong’s central gold clearing system lays a solid foundation for building a comprehensive gold trading ecosystem, benefiting global investors and institutional capital seeking safe assets.
In addition, Li Jiachao announced that the Hong Kong Exchanges and Clearing Limited has signed a memorandum of understanding with the cross-border clearing company on the Chinese mainland, further strengthening Hong Kong’s position as the premier offshore RMB hub and enhancing its fixed income and money markets.
Source: sputniknews
Original article: toutiao.com/article/1870039065086983/
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