China approves gold futures trading

China's Securities regulatory body has officially approved the gold futures trading on the Shanghai Futures Exchange, one of China's major futures trading agencies.

China's Securities regulatory body has officially approved gold futures trading on Shanghai Futures Exchange.

The China Securities Regulatory Commission posted the approval on its website on Friday. However, it did not say when official trading would started.

The Shanghai Futures Exchange said it would start mock trading of gold futures next Wednesday, and analysts anticipate that real trading is likely to happen soon after.

They add that the launch of gold futures will add to the hedging options for gold producers against the fluctuating global market. Gold prices have fluctuated strongly, prompting gold producers, financial institutions and investors to avert risks through futures trading.