Market to abandon tael for new service

PUBLISHED : Saturday, 16 February, 2002, 12:00am
UPDATED : Saturday, 16 February, 2002, 12:00am
 

The Chinese Gold and Silver Exchange will break with nearly a century of tradition when it abandons the tael (37.79 grams) for gram weights at the launch of its new trading service.


The exchange, which began operations in 1910, plans to start a 99.99 per cent fineness gold-trading service in the first quarter of this year and will adopt its new weight graduations for the launch.


The exchange now handles only 99 per cent fineness gold, which is traded in taels, but society president Fung Chi-kin said yesterday the new product would use grams rather than the tael.


A difference also would be seen in the contract size of the two products. While 99 per cent fineness gold was traded in a lot size of 100 taels, the lot size of the 99.99 per cent fineness gold would be a kilogram.


'We see an increasing demand for 99.99 fineness gold because today's technology allows goldsmiths to use more pure gold for making accessories,' said Mr Fung, who was speaking after the celebration of the post-new year opening of trading.


To capitalise on the anticipated boom in China's gold market, which is expected to be opened soon, the exchange also would provide a reference price for the new product in yuan.


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