Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Agnico-Eagle Mines Ltd. - AGE (U.S. AEM) -- Ignore unavailable to you. Want to Upgrade?

To: Yogizuna who wrote (1427)	7/11/2001 10:48:02 AM
From: Roebear	Read Replies (1) \| Respond to of 1612

Yogi and all, Some interesting China news: Hong Kong's gold exchange will undergo the biggest reforms in its 91-year-history in a bid to capitalise on the opening up of the mainland market. The reforms include a substantial extension in trading hours and the introduction of an electronic trading system, while a new high-purity gold product will be launched in autumn. Fung Chi-kin, president of the Chinese Gold & Silver Exchange Society, said the measures all served one goal - to ensure Hong Kong's gold market would attract international and mainland investors. "We must ensure our products, trading-system and trading-hours can match what the international investors want," he said. "It is only if the Hong Kong exchange has active trading activities that the international houses will choose it as a hub to expand in China." Last year, about 128 tonnes of gold were imported into Hong Kong, compared with 800 tonnes to India - the world's largest gold importer. Mr Fung expected Hong Kong's gold imports to rise significantly once China lifted its import ban after it entered the World Trade Organisation. "International firms would like to use Hong Kong as a re-export centre to transfer gold products to China," he said. "But we must upgrade our exchange first or these business opportunities will be lost to another regional centre." Established in 1910, the Chinese Gold & Silver Exchange Society offers Chinese gold trading in Hong Kong dollars. Trading volume reached its peak in the 1970s and 1980s when the global gold market was booming, but volume has diminished since the 1990s. Investors have switched to trade London Gold - in US dollars - in an over-the-counter market operated by international gold brokers and banks on an electronic system 24 hours a day. "The Hong Kong gold exchange has lagged behind what investors need and it is time for us to catch up," Mr Fung said. The new product to be introduced in autumn will be a gold bar with purity of 99.99 per cent. Mr Fung said many of the exchange's 190 member firms were jewellery manufacturers who tended to use more of the 99.99 per cent purity gold. He estimated that when the new gold bars were introduced, the daily turnover of the exchange could increase from HK$400 million to HK$2.5 billion. The new product will be traded in Hong Kong dollars but will have reference settlement prices in yuan and US dollars, to cater to the needs of international investors. The extended trading hours will see the closing time change to 2.30am from 4.30pm, to match the active gold markets in London and New York. The exchange now trades from 9am to 12.30pm, then 2.30pm to 4.30pm. Mr Fung said an electronic trading system was needed to cope with the extended trading hours. "We have been in talks with several technology companies to introduce an electronic gold trading system for our members," he said. The start of the extended trading hours will depend on when the electronic trading system can be introduced. The exchange would maintain floor-based open-outcry in the existing trading hours, but then use the electronic system to trade from 4.30pm until 2.30am, Mr Fung said. He said the exchange was also in talks with mainland authorities on how its members could become involved in the proposed Shanghai gold exchange. One proposal was for mutual membership so that the members of the two exchanges could trade each other's products. biz.scmp.com Enjoy! Roebear