RT Banner 2021V4.gif

China Daily

News> Hong Kong> Content
Tuesday, March 05, 2019, 19:29
Gold trading to go digital next month
By Edith Lu
Tuesday, March 05, 2019, 19:29 By Edith Lu

Hong Kong’s gold exchange is to launch a new trading platform empowered by blockchain technology next month, allowing investors to trade the yellow metal more conveniently online around the clock.

The Chinese Gold and Silver Exchange Society hopes the new platform, Goldzip, would attract more young retail investors, its president Haywood Cheung Tak-hay said on Monday.

ALSO READ: Gold comes alive in biggest jump since '16 after equities roiled

The recent volatile financial market has heightened risk aversion and again led to an increase in the trading volume for gold

Haywood Cheung Tak-hay

president of the Chinese Gold and Silver Exchange Society

The exchange has lowered the bar for investors, with the minimum trading amount reduced from one single tael to one single gram. With the current gold price, the entrance fee for trading in the gold market could be as little as HK$330, excluding commission fees.

Cheung hoped that the lower entrance fee would help lift the gold trading volume to 10 tons this year.

“In the past few years, the average daily turnover in gold trading had fallen from HK$150 billion to HK$60 billion,” he said. “But, the recent volatile financial market has heightened risk aversion and again led to an increase in the trading volume for gold.”

READ MORE: Shaping the future with blockchain

He believed the digital platform could get more retail investors involved in spot gold trading as it would help them take physical possession for off-site safekeeping in Hong Kong.

Cheung said the exchange might cooperate with other markets in future to enable investors to take physical possession of gold outside Hong Kong.

He expected the digital platform to be launched in other cities in the Guangdong-Hong Kong-Macao Greater Bay Area in future.

As digital gold has no geographic limitations, he hoped it could circulate in the Asian market and become a stable electronic currency and payment method.

edithlu@chinadailyhk.com

Share this story

CHINA DAILY
HONG KONG NEWS
OPEN
Please click in the upper right corner to open it in your browser !