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UPDATE 1-Hong Kong exchange aims to launch gold contract in Sept

* Plans to launch gold contract in Sept

* Still needs regulatory approval

* Will be denominated in both dollars and yuan (Adds comment, detail)

HONG KONG, June 14 (Reuters) - Hong Kong Exchanges and Clearing Ltd is aiming to launch its planned physically-delivered gold futures contract in September, its head said on Tuesday.

Asia, the top bullion-buying region, has seen several gold contracts launched in the last few years as it clamours to gain pricing power over the metal.

“We will be launching this physically delivered gold contract, hopefully in September subject to (regulatory) approval,” Charles Li said at an industry event.

The gold contract will be simultaneously denominated and settled in U.S. dollars and Chinese yuan, he said.

“By making that choice, you can express a view on the forward interest rate and exchange rate of the respective currencies.”

Li said in April that the HKEx hoped to launch a gold contract in the third quarter of 2016.

Li said that the size of the contract had yet to be finalised, but that it would be metric rather than imperial measure that is favoured by the London bullion market.

At the same conference, London Metal Exchange CEO Garry Jones said it was still too early to give further details on the LME’s plans for a gold contract.

There has been a growing push by the HKEX, one of the top five exchanges in Asia, to diversify its revenue streams away from its traditional equity trading business because of weak stock markets.

Investor demand for equities in both Hong Kong and the mainland has cooled in recent months due to a weaker outlook for corporate earnings and a slowing economy. (Reporting by Melanie Burton; Editing by Joseph Radford)

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