From The Financial Times:
Beijing on Friday approved the launch of China’s first gold futures contracts, with simulated trading on the Shanghai Futures Exchange set to begin on Wednesday.
The exchange is expected to begin selling real renminbi-denominated contracts soon after and is preparing for huge demand from the rapidly expanding number of Chinese producers and consumers. The contracts will help Chinese companies to hedge against fluctuations in the global gold price and allow them to have more influence in setting those prices. “The word is that the futures contracts will be launched on January 9,” said Cai Luoyi, head of research at Shanghai International Futures, one of the country’s largest futures brokerages. “Renminbi-denominated futures will probably have some effect on global prices but the biggest implications are for domestic companies.” [Full Text]