Great news: the yuan denominated gold ETF in Hong Kong has started trading.

(Kitco News) -UBS says it may take some time for a new gold exchange-traded fund in Hong Kong to gain some traction. The first gold ETF denominated in yuan was launched this week and initial trading volumes were “nothing to rave about,” UBS says. Over the last two days, turnover on the Hang Seng RMB Gold ETF was around 33,000 lots or roughly 10,600 ounces. “This does not sound all too exciting considering total global ETF holdings of 78.50moz and an average daily change of 33.2koz in the last 12 months,” UBS says. “But we do not think that this performance should be taken negatively either. After all, trading in the yuan-denominated gold ETF is still in its infancy. It will probably take some time before investors in Hong Kong fully warm up to this new product.” For traditional physical markets, there is some “sense of comfort and security” in being able to hold a hard asset like gold, UBS says. “This suggests that the shift from gold coins and bars to an exchange-traded product may take some getting used to.”

http://www.kitco.com/reports/KitcoNewsMarketNuggets20120216.html