China’s Securities Regulatory Commission has approved the setting up China’s first gold futures contracts on the Shanghai Futures Exchange (SFE), according to reports. The World Gold Council had noted that China’s gold demand for jewellery hiked by 24% to 221 tonnes in volume, during January to September 2007. Although no official announcement has been made regards when the trade would begin, a Financial Times article quoted Cai Luoyi, the head of research at Shanghai International Futures, that the futures contracts were expected to be launched on January 9. A 5% limit has been set on on daily price movements, as well as a minimum margin requirement of 7% of the gold contract value. The size of the gold futures contract has been established at 1 kg per lot.