Hong Kong's bright future in OTC gold trades

Zhu Jing, General Manager of Global Markets of the Bank of China (Hong Kong), said Hong Kong should provide a clear and standard service on over-the-counter gold trades to broaden the liquidity and depth of the infrastructure for the gold market.

According to the World Gold Council's report in 2024, the OTC gold volume ranked number four globally in daily average trading volume across all major assets. Jing highlighted that most of the market participants were from mainland China, Hong Kong, as well as countries from the Asia Pacific region. She said a government-led clearing system can standardize gold exchange, thus enhancing the security, transparency, and liquidity for the market.

Jing pointed out that the Asia Pacific region showcases strong purchasing power in gold. With countries such as Thailand trading gold at US$126,000 (HK$982,800) to US$142,000 (HK$1,107,600) per bar per ounce last year.

Gloria Leung