Date：September 12, 2014
Source: Securities Daily

　　This April, the market guessed that CME was to launch physically deliverable gold futures contract in Asia region and this information was confirmed yesterday. It is learned that CME is to launch one-kilogram gold futures contract in Hong Kong for the first time, which will be the first psychically deliverable futures contract in Asia.
　　Giant consumers of gold, Asian countries such as China and India have huge demands for jewelries, gold bullions and gold coins. The demand for psychical gold in Asia had a sharp increase last year. Insiders believe that CME’s Asian gold futures contract, similar with Comex’s gold futures contract which serves as the benchmark price for global gold futures, will be helpful for the pricing of gold futures in Asia.
　　According to Harriet Hunnable, Executive Director of Metal Products of CME Group, Hong Kong is the key portal of Far-east gold market, and the launch of one-kilogram gold futures contract in Hong Kong could provide a fast and efficient pricing tool. It will become an ideal risk management tool for local physical gold market. Preciously, all precious metal contracts were delivered in the US, and this new contract will be delivered in Hong Kong, which will be a very unique product.
　　Since this product will be traded on CME’s platform, it could provide real-time gold price as well as gold futures price. It could be sold through FCMs around the world and banks’ network, which will involve investors all over the world. They could not only trade on the electronic platform of CME, but also join in CME’s clearing platform.
　　This new product attracts strong interests from gold warehouses in Hong Kong. Among them, VIAMAT, Brinks, Hong Kong International Airport (HKIA) have strong capabilities in gold warehouse management and could be selected as the delivery warehouses in Hong Kong.