Lee Ka-chiu: Hong Kong accelerates the establishment of an international gold trading market

Hong Kong Chief Executive John Lee delivered a new Policy Address in the Legislative Council today (17th). Regarding promoting financial market development, John Lee proposed a number of forward-looking measures aimed at further enhancing Hong Kong's status as an international financial center and a global gold trading hub.

He stated that he has fully accepted the recommendations of the Working Group on Promoting Gold Market Development, and that the Financial Services and the Treasury Bureau (FSTB) of the Hong Kong SAR Government will be responsible for implementing these measures.

Relevant measures include:

First, promoting collaboration between the Airport Authority Hong Kong and financial institutions to expand Hong Kong's gold storage capacity, with the goal of exceeding 2,000 tons of storage capacity within three years, gradually establishing Hong Kong as a regional and even international gold reserve hub.

Second, encouraging international and local gold traders to establish or expand gold refineries in Hong Kong. At the same time, actively communicating with relevant mainland authorities to explore the development of a "processing with imported materials" cooperation model—where gold is refined in the mainland and then shipped to Hong Kong for fine processing and delivery—further consolidating Hong Kong's key role in the international gold supply chain.

Third, establish a central gold clearing system in Hong Kong to provide secure, efficient, and reliable clearing services for gold transactions that meet international standards. The SAR government will also invite the Shanghai Gold Exchange to participate in the development of this system, laying the foundation for future interconnection between the two gold markets.

Fourth, enrich the portfolio of gold-based investment products and support financial institutions in developing more diversified gold financial products. This includes promoting the application of technologies such as blockchain in the gold trading market and exploring innovative tools such as tokenized gold investment products.

Fifth, support the industry in establishing a Hong Kong Gold Industry Association to create a collaborative platform for regular communication with the government and regulatory agencies. The association will assist in strengthening industry promotion, actively attracting customers and investors from countries and regions along the Belt and Road Initiative, and promoting talent training in the gold industry.

In addition, Lee Ka-chiu also mentioned that the Shanghai Gold Exchange's International Board has established its first offshore gold delivery warehouse in Hong Kong and launched a new contract for delivery in Hong Kong, marking a new stage in cooperation between the two gold markets. The SAR government will continue to deepen its cooperation with the Shanghai Gold Exchange to jointly promote the coordinated development and internationalization of the Shanghai and Hong Kong gold markets.

Through these measures, Hong Kong will further consolidate its strategic position in the global gold market, strengthen its functions as an international financial center, and make greater contributions to the country's financial opening up and market connectivity.