Value Gold ETF adds new RMB counter

29 November 2013   Category: News, China, Hong Kong   By Asia Asset Management

Value Partners Group Limited announced on November 28 that Sensible Asset Management Hong Kong Limited, a wholly-owned subsidiary of the group, has received approval from the Hong Kong Stock Exchange to adopt a dual counter arrangement for Value Gold ETF, with effect from November 29, 2013.

Value Gold ETF was first launched in October 2010, with its trading currency denominated in the Hong Kong dollar. The fund is the first and only ETF backed by physical gold stored in the Hong Kong International Airport Precious Metals Depository Limited. Being the first gold ETF in the world with the Hong Kong dollar/RMB dual counters, it will provide investors with an option to trade the ETF units in either of the two currencies.

“As Hong Kong has developed itself as the largest offshore renminbi centre in the world, the pool of renminbi deposits in Hong Kong has been growing fast. There are 730 billion RMB (US$119.8 billion) deposits in Hong Kong, in which around 80% are sitting in time deposits. The dual counter arrangement will provide an alternative for renminbi holders to diversify their offshore renminbi assets into gold, an investment tool which enjoys low correlation with other asset classes such as equities and fixed income,” said William Chow, managing director of Value Partners.

He continued: “With the accumulating wealth of emerging market economies, coupled with limited supply, gold could remain an important part of investors’ portfolios and we trust with the new RMB counter available, investors would enjoy more flexibility in their asset allocation.”