Hong Kong exchange tries gold futures again, with physical delivery this time

Hong Kong Exchanges and Clearing will undertake in the third quarter its third attempt to launch a gold futures contract after two previous failures, but traders have mixed views on its chances for success.

HKEX, which operates the local stock and futures markets, on Monday will kick off promotional efforts for a range of workshops and seminar for brokers, investors, and media as part of its plan to launch two new gold futures contracts -- one in US dollars and one in yuan -- with physical delivery.

However, HKEX is confident of success with the new launch. Li Gang, HKEX’s co-head of market development, said the new version will be the first gold futures contracts to be denominated in yuan and US dollars and traded on the same electronic platform operated by HKEX. This is different from the 2008-2015 period when it was only traded in U.S. dollars. ...

The new contract will be for a 1 kilogram gold bar with physical delivery, also different from the previous time when contracts were only settled in cash. ...

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