Jim Sinclair’s Commentary
Very Chinese, afoot at a time when unrelentingly building both gold and the Yuan as primary currencies.
Hong Kong becomes first centre for gold trading in yuan
16 October 2011 Last updated at 21:50 ET
Hong Kong has become the world’s first place to offer gold trading in yuan, cementing its status as an offshore hub for the Chinese currency.
The Chinese Gold & Silver Exchange Society (CGSE) said it will offer offshore renminbi-denominated spot gold contracts to investors.
The move comes amid a push by Chinese authorities for a more international role for its currency.
Hong Kong is the world’s third-largest gold trading centre.
"By attracting both local and international investors, the Renminbi Kilobar Gold is a significant step towards internationalizing the renminbi," said Haywood Cheung, president of CGSE.
Growing demand
The growth of the Chinese economy coupled with a push by the authorities for a more global role for their currency has seen an increased demand for yuan-denominated investment products.
At the same time Hong Kong has been trying to promote the city as the offshore trading hub for the yuan.
