First Yuan-Denominated Gold ETF Begins Trading
February 14th at 10:55am by John Spence
The first yuan-denominated gold exchange traded fund started trading in Hong Kong on Tuesday. The ETF is managed by Hang Seng Bank.
The fund is designed to track gold prices and provides returns in yuan. [Hang Seng Bank to List Gold ETF]
The ETF made a weak debut but analysts said demand would likely pick up as investors became more familiar with the product, Reuters reported.
“It will take time for investors to understand the product before they jump in,” said Hou Xinqiang, a gold analyst at Jinrui Futures in China, in the Reuters story. “Besides, Hong Kong has a lot of gold investment products and the market is already very savvy, so investors will probably take some time to assess its selling point.”
The new fund is called the Hang Seng RMB Gold ETF.
U.S.-listed gold ETFs were little changed in early trading Tuesday.
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