Shanghai Gold Exchange launches first offshore delivery warehouse in HK

The Shanghai Gold Exchange has launched its first offshore gold delivery warehouse in Hong Kong, as the SAR government expects to boost the city's gold reserve. 
As part of efforts on business expansion, the exchange has also listed gold contracts for delivery in Hong Kong on its international board, with a number of domestic and foreign institutions completing transactions on the first day.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu welcomed the move, calling it a key step in the internationalization of China's gold market.
Hui said the initiative would enhance Hong Kong's role in the regional market, expand the global footprint of yuan-denominated gold trading, and help the gold reserves in Hong Kong.
Hui also mentioned an action plan signed with Shanghai's government last week, and said the move is the latest example of collaboration between Hong Kong and Shanghai.

ANSON LUK