(Policy Address 2024) Hong Kong to build an international gold trading market

Chief Executive John Lee Ka-chiu said in his policy address on Wednesday that the SAR will build an international gold trading market, utilizing the city's security and stability edge.

Lee stated today that Hong Kong ranks among the world's largest import and export markets for gold by volume. Amidst the increasingly complicated geopolitics, the Hong Kong leader pointed out that the city's security and stability give it a clear edge as an attractive place for physical gold storage, driving more gold trading, settlement and delivery activities, and potentially propelling Hong Kong into a gold trading center.

This will spur development of the related industry chain, ranging from investment transactions, derivatives, insurance, storage, to trading and logistic services.

He said the government will promote the development of world-class gold storage facilities, facilitating the storage and delivery of spot gold by users and investors in Hong Kong and driving demand for related services such as collateral and loan businesses, opening up new growth areas of the financial sector.

The Financial Services and the Treasury Bureau (FSTB) will also set up a working group to take forward the establishment of an international gold trading center. This will include, among other things, strengthening the trading mechanism and regulatory framework, promoting the application of cutting-edge financial technology, and actively exploring with the mainland authorities the inclusion of gold-related products in the mutual market access program.