Hong Kong, October 16, 2024 – Hong Kong is poised to leverage its strategic strengths in gold import and export to establish itself as a premier international gold trading center, according to John Lee, Chief Executive of the Hong Kong Special Administrative Region (HKSAR). In his third policy address on Wednesday,
Lee highlighted the city’s critical role in the global gold market and outlined ambitious plans to expand its influence in this sector.
Lee emphasized that Hong Kong already ranks among the world’s largest import and export hubs for gold by volume. In a world marked by geopolitical uncertainty, Hong Kong’s renowned security, stability, and robust infrastructure make it a highly attractive destination for investors seeking secure gold storage and trading services. This, he noted, sets the stage for a thriving gold-related ecosystem encompassing trading, settlement, and delivery.
“This will accelerate the development of an integrated industry chain, spanning investment transactions, derivatives, insurance, storage, and logistics services,” Lee stated. He added that the HKSAR government aims to promote world-class gold storage facilities, which will not only cater to investors’ needs but also drive demand for collateral and loan services tied to gold, opening up new avenues for growth in the financial sector.
To spearhead the initiative, the Financial Services and the Treasury Bureau of the HKSAR government will form a working group to oversee the creation of this international gold trading center. Lee noted that this will involve enhancing Hong Kong’s trading mechanisms and regulatory framework, integrating cutting-edge financial technology, and collaborating with mainland China to include gold-related products in mutual market access programs.
The establishment of the gold trading center is part of a broader strategy to fortify Hong Kong’s standing as a global financial hub. Lee also announced initiatives to deepen mutual market access and strengthen the city’s position as the world’s largest offshore renminbi (RMB) business hub. This includes offering more RMB-denominated investment products and securing support from China’s Ministry of Finance to increase the issuance of RMB sovereign bonds.
In addition, Hong Kong will expedite the launch of offshore RMB sovereign bond futures and actively engage with mainland authorities to further expand the bond connect program. These measures aim to enhance liquidity and broaden the range of investment opportunities in Hong Kong’s financial markets, reinforcing its status as a global powerhouse in finance and trade.
With these strategic initiatives, Hong Kong is set to become a major player in the international gold market, while simultaneously reinforcing its reputation as a critical nexus for global finance.