HKEX to Study Launch of RMB-Denominated Gold Futures

According to CCTV Finance, Hong Kong SAR's 2026 Policy Address proposed deepening Hong Kong's global offshore RMB business and capital market. HKEX Chief Executive Officer Bonnie Chan said on the 2nd that international investors have refocused on Asia, especially the Chinese market, and are interested in diversified asset allocation. Hong Kong needs to build a diversified asset ecosystem rather than simply making the stock market bigger and stronger. HKEX will study launching RMB-denominated gold futures.

Chan said that an important topic in aligning with the national 15th Five-Year Plan is consolidating and enhancing Hong Kong's status as an international financial center, in which HKEX plays an important role and frequently considers how to improve primary market fundraising and secondary market daily trading volume. She noted that Hong Kong regained the world's top spot in IPO fundraising last year, but also believes Hong Kong must continuously improve its listing framework, because the country nurtures different types of enterprises with differing financing needs; for example, artificial intelligence, biotechnology and new energy companies often need to invest substantial resources in research and development. To support this, HKEX has worked in recent years to develop listing chapters tailored to such companies, and the arrangements have been well received by the market.

As for the commodities market, Chan noted that after HKEX recently relaunched USD-denominated gold futures, investor response was enthusiastic. She said HKEX has put RMB-denominated gold futures within its consideration. In addition, she mentioned that the London Metal Exchange now has more than ten recognized warehouses in Hong Kong, but that is still not enough, and she has noticed external discussion about whether large warehouses should be sought to meet market demand.

On July 7 this year, the Hong Kong Securities and Futures Commission said it would continue to support HKEX in launching more futures products, including RMB-denominated gold futures.

On September 23 this year, HKEX Managing Director and Head of Markets Wilfred Yiu said at the Treasury Markets Summit that HKEX expects to launch RMB-denominated, Hong Kong-settled gold futures contracts in early 2027 and to roll out more RMB-denominated commodity investment products, including precious metals, to enrich the choices of RMB-denominated assets.

According to the contract specifications published by HKEX, the underlying of the RMB (Hong Kong) gold futures is 1 kilogram of gold with a gold content of no less than 99.99%, bearing a recognized refiner's label and its serial number. The trading currency is the RMB, the minimum price fluctuation is RMB 0.05 per gram, contract months are the spot month and the following 11 months, settlement is by physical delivery, and trading covers both the day session and the after-hours futures trading session.

HKEX is scheduled to announce details of the new RMB-denominated, physically settled gold futures contract within this year, opening up a cross-market physical delivery channel.

(Source: Futures Daily)