The Shanghai Futures Exchange (SFE), one of China's major
futures trading agencies, is expected to launch gold futures
trading soon following regulatory approval.
The China Securities Regulatory Commission approved the gold
futures trading on the SFE, a statement posted on its website said
on Friday. However, it did not say when the trading would be
started.
The launch of gold futures on the SFE would add to the hedging
options for gold producers against the fluctuating global market,
analysts said.
Gold prices have fluctuated strongly, prompting gold producers,
financial institutions and investors to avert risks through futures
trading.
The SFE said earlier it would adopt strict regulations on the
risk control of gold futures after it initiated preparation work in
September with commission approval.
It would ask for a minimum margin requirement of seven percent
of the contract value, and clamp firmly on the daily price
fluctuations, probably within the range of plus or minus five
percent of the previous settlement prices.
Gold was the second new futures product to be introduced to the
country's futures market this year. The first was zinc that
launched trading in March.
Last year, China produced a record 240 tons of gold, a growth of
7.15 percent year-on-year. In the first nine months of this year,
it produced 191.456 tons of gold, an increment of 22.175 tons, or
13.1 percent, from the same period last year.
(Xinhua News Agency December 29, 2007)
