Hong Kong asset manager Value Partners obtains licence to engage in dual counter trading for its gold ETF product.

Value Partners Group, the Hong Kong-based asset management firm, has been granted approval by the Hong Kong Stock Exchange to adopt a dual counter arrangement for its Value Gold ETF product, the firm said in a statement.

Value Gold ETF, managed by wholly-owned subsidiary Sensible Asset Management Hong Kong, was launched in October 2010 denominated in the Hong Kong dollar. It was the only exchange traded fund backed by physical gold stored in the Hong Kong International Airport Precious Metals Depository. By having dual counters in HKD and the Renminbi, investors will have an option to raise the ETF units in either of the two currencies.

"There are RMB730 billion ($119.8 billion) deposits in Hong Kong, in which around 80 per cent are sitting in time deposits. The dual counter arrangement will provide an alternative for RMB holders to diversify their offshore RMB assets into gold, an investment tool which enjoys low correlation with other asset classes, such as equities and fixed income," said William Chow, managing director of Value Partners.

The approval took effect in 29 November 2013.

Value Partners records $9.9 billion in assets under management as at 31 october 2013. Besides Hong Kong, the firm has offices in Beijing, Shanghai, Chengdu, Taiwan and Singapore.