FINANCIAL STRUCTURE
37
and 77 individual dealers), of which 38 corporate dealers and 10 individual dealers were shareholders of the Hong Kong Commodity Exchange; 358 commodity dealers' representatives; three corporate commodity trading advisers; five individual com- modity trading advisers; and three commodity trading advisers' representatives.
The Commodity Exchange Compensation Fund, established to compensate those who suffer pecuniary loss as a result of default by shareholders of the exchange, amounted to $2.6 million at the end of the year.
Deposits lodged by dealers other than those members of the Hong Kong Commodity Exchange stood at $300,000. The purpose of the deposits is to give limited protection to investors against any default by dealers who are not members of the Hong Kong Commodity Exchange.
Gold and Silver Exchange
The 67-year-old Chinese Gold and Silver Exchange Society has emerged as one of the world's largest gold markets in recent years. It is engaged in active forward trading and arbitrage transactions. Many bankers, gold dealers and financiers from all over the world have established either a branch or a representative's office in Hong Kong to take part in the bullion trade.
The society has recently redeveloped an old four-storey building in Mercer Street, where the trading hall is situated, to cope with the increasing trade.
No comments yet.
Private notes are available after approval.