First gold ETF turnover hits HK$147m on debut
Updated: 2008-08-01 07:06
By Hui Ching-hoo(HK Edition)
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(From left) HKEx Chief Executive Paul Chow, SSgA Asia Managing Director Bernard Reilly and World Gold Trust Services Managing Director James E Burton at the IPO ceremony of the first gold ETF in Hong Kong yesterday. China Daily |
The first gold ETF (exchange traded fund) SPDR Gold Trust made its IPO debut in Hong Kong exchange yesterday.
With the settled price of HK$705 in the first trading day, a subscriber with one board lot would pocket about HK$50. The total turnover for the first day reached HK$147 million.
A share of the trust is set as much as the value of one-10th of an ounce of gold. The minimum size of subscription is 10 shares.
Given the offering price is on par with the spot price of London gold during the opening session, the share began to trade with instant gold price - HK$700.5 per share.
The price, however, peaked at HK$706 in the afternoon session, dipping down to HK$705. As many as 208,000 shares changed hands, involving HK$147 million.
At the IPO ceremony, World Gold Council Managing Director Albert Cheng told reporters that gold price would continue to rise in the long run despite that it dropped recently below the $900 per ounce due to the greenback appreciation, as well as the downside reversal of oil price.
"Although gold demand for jewelry has weakened in countries such as China and India, the demand for investment remains strong," he said.
State Street Global Advisors (SSgA) Head of Exchange Trade Funds of Asia Pacific Sammy Yip said the trust currently oversees about $20 billion worth of gold worldwide.
Yip said the trust has chosen to launch in Hong Kong because the city is one of the three largest gold trading centers in the region.
Hong Kong Exchanges & Clearing (HKEx) Chief Executive Paul Chow said the bourse would consider issuing a consultation paper with regard to restricted short sale in a few months.
"We are still soliciting industry opinions at the moment," he said.
In addition, the bourse will convene a board meeting on Aug 30 to discuss the trading of carbon emission futures.
Even though the board has discussed the issue a couple times without resolution, Chow believed a decision would be made in the coming meeting.
Chow also added that although Taiwan is opening its equity market for foreign investment, the bourse has not received any HDR (Hong Kong depository receipts) application for the Taiwan market.
The trust was first listed in the US in 2004. It subsequently went public in the Japan, Singapore and Mexico's exchanges.
(HK Edition 08/01/2008 page3)