New York
London
Hong Kong
Tokyo
Sydney

First Yuan-Denominated Gold ETF Makes Weak Debut

20 February 2012 | by Forex

On Tuesday, the world's first yuan-denominated gold exchange-traded fund (ETF) made a weak debut on the Hong Kong stock exchange but analysts said demand is expected to pick up as investors became more familiar with the product.

Launched by Hang Seng Bank Ltd (0011.HK), the Hang Seng RMB Gold ETF (83168.HK), is intended to track the performance of the London gold fixing price in U.S. dollars. It was flat at midday at 35 yuan (US$5.60), with 30,000 units exchanging hands; each board lot of the ETF is 100 units.

Hang Seng Bank said its yuan-denominated gold ETF provided a new choice for the city's investors to get into gold by using their yuan holdings with a limited range of yuan investment products in the Hong Kong market.

"It will take time for investors to understand the product before they jump in," said Hou Xinqiang, a gold analyst at Jinrui Futures in China.

"Besides, Hong Kong has a lot of gold investment products and the market is already very savvy, so investors will probably take some time to assess its selling point."

Forex News

Forex Blog

  • USD Falls After Disappointing Jobs Data On Friday, the United States dollar fell against the single currency, euro, and the Japanese yen after lower-than-expected U.S. jobs figures bolstered views the Federal Reserve may yet ease the... Read More >
  • Dow And S&P End Lower For Four Days On Monday, the Dow Jones Industrial Average and S&P 500 end lower for four days s investors took their cues from the disappointing jobs report last week that prompted fresh concerns about the U.S... Read More >
  • China Surprises With Trade Surplus In the month of March, China returned to an export-led trade surplus of $5.35 billion. This indicated that a rebound in the global economy is lifting overseas orders just in time for compensating for... Read More >
  • U.S. Jobs Data Brings Fall For Shares On Monday, global stocks and crude oil fell as investors reacted to the surprisingly sharp slowdown in U.S. jobs growth that was reported a week ago. The data raised concerns about the strength of... Read More >
  • Futures Sent Lower By Disappointing On April 6, stock futures closed lower in brief and holiday-thinned trading after a much weaker-than-expected U.S. job growth for March report. S&P 500 futures fell 1.2 percent to suggest a weak... Read More >
  • World Equities May Get Hit By Weak US On Friday, U.S. employment figures fell short of expectations that may mean world stock markets will fall next week and safe-haven government debt prices may rally. After U.S. payrolls grew by 120,... Read More >

Related Blogs :

Disclosure & disclaimer : information available on this site is for informational purposes only and not to be constructed as specific trading advice. Responsibility for trade decisions is solely with the reader.
This material may not be published, broadcast, rewritten or redistributed, unless authorized by the editor. It,s Ratings accepts no liability for the comments content.
The authors of the commentaries are made responsible for their contents.

© 2006-2010 Forex Broker Rating - Top Rated Forex Brokers