Hong Kong banks are importing 400-ounce gold bars as the city prepares for the planned launch of a new gold clearing system in July, Bloomberg reported Monday citing sources familiar with the matter.
At least four banks out of 11 participating in the clearing system are asking traders to transport the bars, which meet the London Good Delivery standard, into the city, the report said.
While Asian markets usually use smaller kilobars for trading, the banks are building inventory of the larger bars to facilitate physical delivery once clearing begins, Bloomberg said citing the sources, who asked to remain unnamed.
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