The HK Gold Connection Grows
Hong Kong aims to become an international gold trading hub
HONG KONG, Oct. 16 (Xinhua) — Hong Kong aims to leverage its position as one of the largest global markets for gold import and export to become an international gold trading hub, according to John Lee, Chief Executive of the Hong Kong Special Administrative Region (HKSAR). During his third policy address on Wednesday, Lee highlighted the city’s strategic advantage in security and stability, especially in the face of geopolitical complexities, making it an attractive location for gold storage and related activities.
Lee emphasized that Hong Kong’s status in gold trading, settlement, and delivery could drive growth across the entire value chain, including investment transactions, derivatives, insurance, storage, and logistics services.
The HKSAR government is committed to promoting world-class gold storage facilities that will facilitate efficient storage and delivery for investors and users. This move is expected to increase demand for collateral and loan services linked to gold, opening new opportunities within the financial sector.
A working group under the Financial Services and Treasury Bureau will spearhead the establishment of the international gold trading center, focusing on enhancing the trading framework, regulatory structure, and exploring advanced financial technologies. Additionally, the government plans to collaborate with mainland authorities to include gold-related products in the mutual market access program.
This initiative is one of several key measures aimed at reinforcing Hong Kong’s role as a global financial center. Lee also announced plans to deepen mutual market access and expand Hong Kong's offshore renminbi (RMB) business. The HKSAR government will seek to introduce more RMB-denominated investment products and work with the Ministry of Finance to boost the issuance of RMB sovereign bonds and launch offshore RMB sovereign bond futures.
Further efforts will include discussions with mainland authorities to expand the bond connect program, strengthening Hong Kong’s position as the world’s leading offshore RMB hub.