THE Hong Kong-based Chinese Gold and Silver Exchange yesterday started trading of the Renminbi Kilobar Gold, which it said was the world's first offshore yuan-denominated spot gold contract.

The first physical settlement premium was 800 yuan (US$125.53) per kilogram, determined by Tony Lui, director of Wing Fung Precious Metals Ltd.

In the first trading day, 322 kilograms of gold was traded at a settlement price of 346.95 yuan per gram, with a value of 111.7 million yuan, according to the exchange.