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Tuesday, February 23, 2016, 16:45

HKEx to offer yuan futures, gold contract

By Bloomberg

Hong Kong Exchanges & Clearing Ltd. will introduce yuan-related currency futures as the bourse aims to deepen links with the Chinese mainland.

The futures contracts will cover the Chinese currency’s exchange rates against the yen, euro, Indonesian rupiah and Malaysian ringgit, Chief Executive Officer Charles Li said at a conference in Hong Kong on Tuesday. A yuan-denominated gold contract is also in the works, he said.

"The cluster of all these currency instruments hopefully will create an eco system for China to say there is an offshore market that you can trade,” Li said. The exchange already offers yuan-dollar futures, “which are trading extremely well now and becoming really big.”

The bourse in January announced a three-year plan to expand ties with the Chinese mainland, including more yuan-related products and starting a system for mainland investors to take part in the city’s initial public offerings.

HKEx has been seeking to capitalize on fund managers wanting access to Chinese mainland assets, as well as mainland investors looking to move money out of their home markets. Hong Kong’s link with the Shanghai stock exchange opened in November 2014, while the Shenzhen version was initially expected to start last year.

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