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Shanghai bourse gets nod for gold futures
(Shenzhen Daily)
Updated: 2007-04-20 14:26 The Shanghai Gold Exchange has received preliminary approval from the People's Bank of China to launch the country's first gold futures contracts, an exchange official said Thursday.
The next step is to apply for approval from the China Securities Regulatory Commission, which is responsible for approval of all new futures products, said Tong Gang, the exchange's spokesman. "The central bank has agreed (to launch gold futures) and we'll submit our application to the securities regulator later," he said. It was unclear, however, how long the commission's approval might take, or whether this would be the final step in the approval process. Analysts say the introduction of gold futures contracts will provide a hedging tool for gold producers and other market participants and probably raise the liquidity of the exchange. The Shanghai Gold Exchange, set up by the central bank in 2001, is the country's only designated trading bourse for gold. It now trades 99.95 percent and 99.99 percent spot gold and spot-deferred gold, as well as platinum and silver. Trading on the exchange is off-limits to foreign investors. Total gold turnover at the exchange in 2006 rose 38 percent to 1,249.09 tons. China is the world's third-largest consumer of gold. (For more biz stories, please visit Industries)
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