HKEX has launched its first deliverable gold futures, which are said to be "ideal for Asia".

The Hong Kong Stock Exchange has launched gold futures contracts traded in US dollars and Chinese Renminbi (yuan), as it tries to expand investments into precious metals amongst Asian investors.

More than 3,000 contracts were bought after they had launched on July 10, with the volume for the first day of trading standing at 2,186 in yuan and 912 in US dollars, the HKEX said in a statement yesterday.

London and New York are two of the biggest players in the gold market, and Hong Kong is trying to close the gap between the three financial centres.

The new products are HKEX’s first deliverable gold futures, and they will complement the gold futures introduced by the London Metal Exchange, a wholly-owned subsidiary of HKEX, under its LMEprecious initiative with the World Gold Council and industry participants.

The launch is the third time HKEX has tried to break into the gold market, with the last offering launched at the height of the financial crash in 2008, and was closed in 2015.

HKEX said that the gold being traded was “ideal for Asia” at “1 kilogram gold bar of at least 0.9999 fineness”.

“We have a number of firsts with these new products:  it’s the first time we’ve launched futures in two currencies, it’s the first time we’ve offered deliverable gold futures in Hong Kong and the LME is the first exchange to offer spot to five-year loco London futures,” said HKEX chief executive Charles Li. “We thank our regulators, our market participants and everyone else who contributed to the successful launch of our CNH and US dollar Gold Futures.”