Hong Kong plans yuan gold futures and wider currency infrastructure

Hong Kong is preparing a series of measures to encourage wider use of the yuan, including a planned yuan-denominated gold futures contract, the South China Morning Post reports. Hong Kong Exchanges and Clearing, the city’s bourse operator, is expected to launch the gold futures early next year. The plan was announced by speakers at a banking summit on Wednesday, according to the report.

The city’s de facto central bank also plans to introduce more yuan products and platforms. These measures are intended to support the diversification and digitalisation of the currency’s internationalisation. The report said the initiatives form part of efforts to develop Hong Kong’s role in yuan-related financial activity.

It also referred to the recent reactivation of a gold contract denominated in US dollars, before the available quotation ended. The supplied material does not give the name of the central bank official who spoke, provide details of the planned products or platforms, or set out the expected size of the futures market. It does, however, establish the timing of the planned contract and the broader objective of expanding yuan-based financial infrastructure.