Previously, there were already RMB products traded on the SEHK. The first RMB product type to list on the SEHK was debt securities in October 2010, followed by a Real Estate Investment Trust (REIT) listing in April 2011. To date, 14 RMB debt securities and one RMB REIT have been listed on the SEHK. However, this is the first time a RMB-denominated Gold ETF will be traded on the SEHK, and Hang Seng Investment Management Limited even labeled it the world's first RMB Gold ETF.
The launch of the RMB Gold ETF is expected to contribute to the growth of Hong Kong as an RMB settlement center. A day before the fund was unveiled, Calvin Tai, HKEx's Head of Trading said, in an official press release, "we are committed to broaden RMB product offerings and develop the ETF market further based on the very successful platform we have already established."
As the first RMB ETF, the main risks that investors in the Hang Seng RMB Gold ETF face are linked to the RMB: foreign exchange risks, RMB hedging risks, and offshore RMB market risks, as well RMB trading and fund unit settlement risks.
