HONG KONG, 13 February, 2012- The Hong Kong Mercantile Exchange (“HKMEx”), China’s global marketplace, announces that its trading volume surpassed one million contracts, marking a significant milestone in the Exchange’s development since it went live in May last year.
As of 5pm on February 13, trading on HKMEx’s gold and silver futures reached 1,003,210 contracts, representing total turnover of over US$50 billion (around HK$390 billion). Daily average volume for the first eight trading days of February stood at 7,198 contracts, compared to 2,455 per day in the whole of May. Since launch, more than 832 metric tons of gold have been traded.
“HKMEx was founded to bridge China’s fast-growing commodities markets with the rest of the world by providing products adhering to international standards, but tailored to local and regional market participant’s risk management needs. This is especially pertinent amid today’s uncertain global economic climate, characterised by high commodity price volatility,” said Barry Cheung, Chairman of HKMEx. “We are pleased to have reached this significant trading milestone today, and look forward to the continued support from our members as well as exchange partners as we pursue the task of building a vibrant and liquid marketplace for commodities trading in a fast and secure environment.”
In addition to US-dollar gold and silver future contracts currently traded, HKMEx plans to launch a renminbi-denominated gold futures contract along with other precious metals. Also in the pipeline are renminbi contracts in copper and other base metals. The Exchange will also develop other futures contracts in energy, agriculture, and commodity indices.
HKMEx is backed by well-known shareholders including China’s ICBC and COSCO Group, as well as Russia’s En+ Group, among other regional and international institutions. Its membership of 23, up from 18 at launch, include some of the most well-respected futures brokerages and financial institutions in Asia and across the world.