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.

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