UPDATE 1-Hong Kong's SPDR Gold turns over $18.8 mln on debut

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LONDON, July 31 (Reuters) - Hong Kong's first gold-backed exchange-traded fund, SPDR Gold Trust (2840.HK), turned over $18.8 million on its debut on the Hong Kong Stock Exchange.

SPDR said it turned over 208,000 shares, each representing 0.1 ounces of gold, on its first day of trading.

The trust is a cross-listing of New York's SPDR Gold Trust (GLD), the world's largest gold-backed ETF.

In comparison, SPDR turned over only 48,350 shares, worth some $4.45 million, on its first day of trading on the Tokyo Stock Exchange last month.

Albert Cheng, SPDR's managing director for the Far East, told Reuters the size of trades suggested interest so far had come chiefly from retail investors.

"Investors in Hong Kong, like those in other parts of the world, are worried about inflation, which is a major factor driving up the gold price," he said.

"This, and the weakening U.S. dollar, are the two main (incentives) to get involved in the gold market," he said.

ETFs are trusts that issue securities backed by physical commodities, allowing investors to gain exposure to the gold prices without counterparty risk.

SPDR Gold Shares are backed by 0.1 ounces of physical gold bullion each, and are denominated in Hong Kong dollars.

(Reporting by Jan Harvey; Editing by Michael Roddy)