Simmons & Simmons advises on world's first RMB-denominated gold ETF
International law firm Simmons & Simmons has advised Hang Seng Investment Management on the launch of the world's first renminbi-denominated physical gold ETF, benchmarking the LBMA gold price, listed on the Hong Kong Stock Exchange.
The Hang Seng RMB Gold ETF will begin trading on February 2012. It will track the performance of the London gold fixing price in US dollars, but it seeks to hedge against the renminbi exchange rate to the US dollar.
The Simmons & Simmons team was led by partner and Head of the Funds Group in Hong Kong, Rolfe Hayden and Managing Associate Eva Chan.
Commenting on the transaction, Mr. Hayden said: "Hang Seng's new ETF is another step towards the internationalisation of the RMB through Hong Kong. Hong Kong investors continue to be supportive of the development of new RMB products and commodities products, gold in particular, and we are delighted to have advised Hang Seng on its ground-breaking new ETF."
In 2011, Simmons & Simmons advised on the Value Gold ETF, Hong Kong’s first domestic physical commodities ETF and the first ETF to use the Hong Kong government’s precious metals depositary.