HSBC to expand gold storage capabilities to 200 tons in Hong Kong: CEO

HSBC (0005) said it is expanding its physical gold storage capabilities to 200 tons in Hong Kong in the coming months and has executed its first half-dozen-plus trades on the HAU across customers, including refiners and jewelers.

The expansion in Hong Kong is intended to support the government's broader 1,000-ton storage hub vision, with HSBC targeting a 20 percent to 25 percent share in that market, chief executive Georges Elhedery said at the Hong Kong FIC & Bond Connect Summit on Tuesday.

The bank manages more than 50 storage facilities across 14 countries, including a 600-ton storage capability in London, Elhedery said, adding that it will provide trading, market-making, and financing capabilities, with global gold exposure hitting more than US$100 billion (HK$780 billion). 

Central banks have been eager to buy gold over the last few years at multiple times the pace of previous years, creating global momentum, he said, adding that retail appetite in Hong Kong is also exceptionally strong.

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