China's SFE Gold Futures Trading Launches

Source:

An exchange official said the contract size of 1,000 grams (32.15 ounces) .is large enough to discourage individual investors who lacked the ability to withstand risk, while also attracting institutional investors.

The Shanghai Futures Exchange (SFE) will launch gold futures trading on January 9; however, the contract size has been tripled to discourage individual investors.

An exchange official said the contract size of 1,000 grams (32.15 ounces) .is large enough to discourage individual investors who lacked the ability to withstand risk, while also attracting institutional investors. The original contract size was listed at 300 grams (9.64 ounces).

Investors who wish to acquire physical gold should use the spot market, the bourse said.

The China Securities Regulatory Commission announced last week that it had approved the gold futures. The Shanghai Gold Exchange now offers spot and forward gold trading...

China mined 240 tonnes of gold last year. In the first nine months of this year, it produced 191 tonnes of gold, up 13.1% for the same period a year ago. Gold prices at the Shanghai Gold Exchange rose 23% during 2007.

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