Staff reporter
Hong Kong International Airport will expand the capacity of its precious metals depository by over five times to 1,000 tonnes, in line with the government's plan to develop the city as an international gold trading hub.
Airport Authority Hong Kong said it is finalizing the expansion plan of the depository, which it is reaching full capacity amid fast-growing demand.
The capacity will be first increased to 200 tonnes from the existing 150 tonnes and subsequently expanded up to 1,000 tonnes.
The depository has been providing secure storage and physical settlement services to various customers including central banks, commodity exchanges, bullion banks, precious metal refineries and issuers of exchange-traded funds.
Last Wednesday, Chief Executive John Lee Ka-chiu said that the city will establish an international gold trading market in line with its broader aim to establish an ecosystem for commodities trading.
A task force will be set up by the Financial Services and the Treasury Bureau to propel the initiative, which includes discussions with the mainland to add gold-related products in cross-border connect schemes.
Gold prices have hit record highs this year amid escalating geopolitical tensions. Yesterday, spot gold hit a fresh high of US$2,736.86 (HK$21,347) per ounce.
