A TOTAL of 3,929 Gold Futures contracts – each for 32 ounces of Gold Bullion – were traded on the Hong Kong Mercantile Exchange (HKMEx) on its first day of business on Wednesday.
"We are well on our way to becoming the world's gateway for commodities trading with China," said Albert Helmig, president of HKMEx. "With our strategic location in Hong Kong, HKMEx is ideally positioned to facilitate trading in commodities between China and the rest of the world."
Total volume of Gold Futures contracts was equivalent to 3.9 tonnes, around $188 million by value.
By contrast, the 519 tonnes were traded on the Comex division of the New York Mercantile Exchange (NYMEX), while volume on the TOCOM in Tokyo was 178 tonnes.
HKMEx currently offers only 32 ounce Gold Futures contracts, but has plans to expand its product range. The exchange also plans to offer contracts denominated in Chinese Yuan (Renminbi) by the end of 2011.
"Hong Kong is the logical place for the Renminbi to internationalize," said Helmig. "There are certain clients who would prefer to do transactions in Renminbi versus doing the conversion into a different currency."
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