HONG KONG (Commodity Online): Hong Kong Exchanges and Clearing Ltd (HKEx) has launched the world first renminbi denominated physical gold exchange traded fund( ETF), the third gold ETF to be launched by the exchange.
HKEx has launched the renminbi denominated ETF in a bid to capitalize on the surging appetite for both the Chinese currency and bullion. The Hang Seng RMB Gold ETF enables investors to hedge against the foreign exchange rate movements between Rmb and the US dollar so that its performance in Rmb tracks the perfroamnce of the London Gold Fixing price in US dollar as closely as possible.
"We are pleased to facilitate the admission to trading of the first RMB ETF," Calvin Tai, HKEx's Head of Trading, said. "We are committed to broaden RMB product offerings and develop the ETF market further based on the very successful platform we have already established. We will also be pleased to facilitate new and existing issuers to launch more products and to provide investors with additional product choices."
The two other gold ETFs launched by HKEx are SPDR Gold Shares ETF and Value Gold ETF, both denominated in Hong Kong dollars and tracks the peroformance of the London Bullion Market Association gold fixing price. The Value gold ETF, the first indigenous Hong Kong physical product ETF stores gold at the Hong International Airport’s precious metals depository.
Hong Kong's ETF market had the second highest turnover value in Asia-Pacific in 2011 based on statistics published by the World Federation of Exchanges, with average daily turnover of over $2.2 billion.
