Chinese Gold Futures Soar in Initial Debut on SHFE
Source: Mineweb.com (1/9/08)
As gold futures prices hit the $884/oz mark on NYMEX, the Shanghai Futures Exchange (SHFE) Wednesday announced that the initial launch of its gold futures contract surged to the daily limit of 10% in minutes after official trading debuted at the SFE
The gold futures contract benchmark price was set a 209.99 yuan (US$28.84) per gram for contract that will be delivered from June through December.
The contract size has been set at 1,000 grams (32.15 ounces) to discourage individual investors lacking the ability to withstand risk, while encouraging institutional investors. The minimum margin requirement has been fixed at 7%.
Chen Yiqun, an analyst for Suzhou Investment Co., a future brokerage based in the Jiangsu provincial city of Suzhou, told Interfax-China that "the relatively high reference price compared to the current spot price on the Shanghai Gold Exchange will help to invigorate gold futures trading."