Chinese gold futures made a strong debut on the Shanghai Futures Exchange (SFE) on Wednesday amid a world wide bull market for gold.
In a time of potential impending recession in the US, rising oil prices and property not seen as quite the favorite anymore, gold is being seen as a safe haven for investors world wide not the least by the astute Chinese business market.
The June delivery contract made a strong start surging 9.98 percent to 230.95 yuan (around 31.54 USD) per gram. Other daily limit contracts rose for July through to December delivery.
Contract size was set at 1000 grams. This is over three times the original envisaged but was out in place to discourage individual investors.
Analysts said they believed most futures brokers will ask for a 12 percent cash deposit for each contract and investors would need around 24,000 yuan to secure a futures contract.
The most active June contract closed the first trading day at 223.3 yuan per gram, up 6.34 percent, with a turnover of 23.2 billion yuan, according to the SFE website. The total turnover of the seven contracts was registered at more than 27 billion yuan for the day.
After peaking at 230.99 yuan all futures dipped slightly to end up at between 223 yuan and 228 yuan at the close of the day.
China gold futures trading was launched as international gold prices have repeatedly hit new highs. Global prices jumped more than 30 percent last year, the biggest increase since 1979 and look set to jump even higher in the first part of this year.
China now looks set to be a big player in the gold futures market