Hong Kong importing large gold bars ahead of central clearing system launch: Bloomberg

Hong Kong is importing large gold bars ahead of the planned launch of a new central clearing system for bullion next month, Bloomberg reported. 

At least four out of the 11 lenders participating in the clearing system have asked traders to transport 400-ounce gold bars to the city, the report said, citing sources.

These bars, which are of London Good Delivery standard, the global "gold standard" for physical precious metals, are usually traded in London, the world’s largest gold trading center, it said. 

The Asian gold market primarily deals in much smaller kilobars, it said, adding that these banks need to build up their inventories to meet the demand for physical delivery once the clearing mechanism is launched.

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