PanAsianBiz

Gold Futures or Stock Index Futures?

by admin on January 8th, 2008

Gold Futures or Stock Index Futures?

Thinking about the uncertainty of the Stock Index Futures one might consider the Gold Futures that be launched tomorrow on January 9, 2008.

It might be more attractive than the Stock Index Futures to the investors.

The contract size will be at least 1000 grams.

The cost is about Y200K at the level of Y200/gram.

However, this is still much cheaper than the Stock Index Futures, which is about eighteen million Yuan per contract.

Considering the leverage ratio, the cover of the Gold Futures is 9% ( Y18,000) compared to 10% (Y180K) for the Stock Index Futures.

As a result, it's much cheaper to trade with Gold Futures than the Stock Index Futures for a personal investor.

And as far as we know, there is still not an exactly launching date of the Stock Index Futures.

Tomorrow is a big day! Let's wait and see the show of the Gold Futures.

Resource:

http://www.shfe.com.cn/

http://www.cfachina.org/

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POSTED IN: Doing Business in China