Hong Kong needs around-the-clock gold trading
HKEX has presented proposals for two new gold futures products, to be launched as early as July, which would trade 16 hours a day – but brokers say that might prove too short
For the Hong Kong Exchanges and Clearing (HKEX) to be successful in its plans for gold trading, longer trading hours are needed as mainland and international customers are likely to need 24-hour servicing, according to leading traders in the yellow metal.
The HKEX has presented proposals for two new gold futures products, to be launched as early as July, which would trade 16 hours a day – but brokers say that might prove too short.
“The gold market trades around the clock. This is why our customers are trading at CME Group (Chicago Mercantile Exchange) in the US which traders 23 hours a day,” said Alfred Yeung Ping-kwan, founding chairman of Glory Sky Group, which trades gold and stocks for investors in Hong Kong.
HKEX earlier this month said it would start offering two new gold futures contracts – one in US dollars the other in yuan – with physical delivery.
Chief executive Charles Li Xiaojia said he wanted to launch in July if the bourse can get regulatory approval from the Securities and Futures Commission.
This will be the third attempt by the local bourse to launch gold futures contracts.