Update: Market Chatter: Hong Kong Banks Import Gold Bars Prior to Gold Clearing System Launch
(Updates to add comment from the Hong Kong Government)Hong Kong banks are importing 400-ounce gold bars as the city prepares for the launch of a new gold clearing system in July, Bloomberg reported Monday, citing sources familiar with the matter.At least four banks of the 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 an inventory of larger bars to facilitate physical delivery once clearing begins, according to the report.In response to a request for comment, Hong Kong's Financial Services and the Treasury Bureau said preparatory work is in its final stage, with trial operations of the clearing system scheduled to begin later this year.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)