Hong Kong will boosts its strength in gold imports and exports to become a major international gold trading hub, according to John Lee, Chief Executive of the Hong Kong Special Administrative Region (HKSAR).
Delivering his third policy address on Wednesday, Lee highlighted Hong Kong’s status as one of the world’s largest gold import and export markets by volume, making it an attractive location for investors.
Lee pointed out that Hong Kong’s political stability and security, especially amid current global geopolitical complexities, enhance its appeal for gold storage, trading, settlement, and delivery.
“This will spur development of the related industry chain, ranging from investment transactions, derivatives, insurance, storage, to trading and logistic services,” Lee said.
To support this, the HKSAR government will promote the development of top-tier gold storage facilities, catering to users and investors. This will increase demand for related services such as collateral and loans, creating new growth opportunities in Hong Kong’s financial sector.
A working group under the Financial Services and Treasury Bureau will be established to push forward the development of the international gold trading centre.
Its priorities will include improving the trading mechanism, refining the regulatory framework, promoting financial technology, and discussing with mainland authorities the inclusion of gold-related products in mutual market access programs.
This plan forms part of Hong Kong’s broader efforts to bolster its position as a global financial centre. Other measures include deepening mutual market access with the mainland and enhancing Hong Kong’s role as the world’s largest offshore renminbi (RMB) business hub.
Hong Kong will work with China’s Ministry of Finance to expand RMB-denominated investment products, increase the issuance of RMB sovereign bonds, and launch offshore RMB sovereign bond futures. The city will also seek to expand the Bond Connect program with mainland China.
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