Gold futures move hailed
SHANGHAI: Gold traders yesterday hailed the China Banking Regulatory Commission's latest move to allow qualified domestic commercial banks to trade gold futures as an important step in boosting market liquidity at a time when the precious metal is becoming increasingly popular among investors.
The CBRC has released a circular specifying the terms and conditions under which commercial banks can trade gold futures on the Shanghai Futures Exchange. Only commercial banks that have already obtained licenses for trading financial derivatives and spot gold will qualify.
The move was particularly welcomed by domestic commercial banks offering a range of gold-linked wealth management products as they need to trade gold futures to hedge against risks resulting from gold price swings.
