Hong Kong Begins Offshore Yuan Denominated Gold Trade

(Beijing) – Hong Kong has opened the world's first offshore yuan denominated spot gold contracts, further expanding the city's role as an international hub of the Chinese currency.

Hong Kong's Chinese Gold & Silver Exchange Society started trading October 17, with the combined transaction value reaching 111 million yuan on the first trading day.

The new product, dubbed Kilobar referring to the one kilogram weight of each bullion, allows investors to conduct leveraged trading of the yuan through the CGSE's 25 members, with Wing Hang Bank and Bank of China acting as the settlement banks. The bullion will be traded under the upgraded electronic trading system established by the CGSE and settled in yuan.