皇冠体育app

(Xinhua)
Updated: 2007-12-30 14:07

The Shanghai Futures Exchange (SFE), one of 皇冠体育app's major futures trading venues, will start gold futures trading on January 9, the exchange said on Saturday. But the contract size will be larger than originally expected in order to discourage individual investors.

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The contract size will be set at 1,000 grams. In an inquiry that the SFE distributed earlier this month, the contract size was listed at 300 gm.

An official with the SFE said the contract size was decided based on surveys. It is large enough to discourage those individual investors who lacked the ability to take risks, while also being useful to institutions.

"We started gold futures trading to provide channels for gold producers and individual investors to hedge against price fluctuations," said the official.

The 皇冠体育app Securities Regulatory Commission said in a statement on Friday that it had approved the gold futures.

The launch of gold futures would add to the hedging options for gold producers against the fluctuating global market, analysts said.  

The SFE has said it would impose strict risk controls on gold futures. It would set a minimum margin requirement of seven percent of the contract value and a daily price movement band, probably within the range of plus or minus five percent of the previous settlement prices.

Gold was the second new futures product to be introduced in 皇冠体育app this year. The first was zinc, which launched trading in March.

Last year, 皇冠体育app produced a record 240 tons of gold, up 7.15 percent year-on-year. In the first nine months of this year, it produced 191.456 tons of gold, up 13.1 percent from the same period last year.