Shanghai launches gold futures

The seven contracts – June, July, August, September, October, November and December 2008 – to be launched on Wednesday will all begin trading at a price of 209.99 renminbi a gram, the China Securities Regulatory Commission (CSRC) said.

The exchange will impose strict risk controls on trading and has set a minimum margin requirement of 7% of the contract value. It will allow the contracts to trade within a price range of plus or minus 5% of the previous settlement price each day. Spot gold hit a seven-week high of $843.20 an ounce before easing to trade at around $837 an ounce in London late on Monday, December 31. In all, gold climbed more than 30% in 2007.

Volatility in the price of the precious metal has increased in recent weeks, following reports of weak US economic data, and political concerns following the assassination of Pakistani opposition leader Benazir Bhutto, traders said.

The Shanghai exchange also announced the approval of the licences of four new members, allowing them to carry out proprietary trading in gold futures. They are China National Gold Group, Shandong Gold Mining, Shandong Zhaojin Group and Zijin Mining, the nation’s largest gold suppliers and refiners.

The exchange already has more than 200 members trading aluminium, copper, natural rubber and fuel oil futures, as well as the zinc, rapeseed oil and polyethylene futures. The latter three products were launched in 2007. Trading in index futures based on the CSI 300 Index, made up of the 300 largest stocks listed on the Shanghai and Shenzhen stock exchanges on the China Financial Futures Exchange, is still to get under way.

See also: Shanghai exchange to list gold futures
Future's bright

  • LinkedIn  
  • Save this article
  • Print this page  

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: