Shanghai Futures Exchange (SFE) is to launch gold futures trading on January 9th, it has been announced.
The SFE said contract size will be set at 1 km per lo and risk-averse investors are being discouraged from entering into the futures trading of the metal.
On the other hand, institutions "will find it a desirable size to trade with", the SFE said.
"As a monetary reserve and a commodity, gold prices have picked up and fluctuated strongly for the recent years," said an SFE spokesperson.
"That puts the producers, consumers, financial institutions and investors in an urgent need for gold futures to help them discover the price and hedge against risks."
The SFE won regulatory approval on September 11th to trade gold futures, which are already being traded on a simulated basis.
China is one of the major gold producing economies in the world. Last year, domestic production amounted to 240.08 tons, an annual rise of 7.15 percent.