Hang Seng Investment Management launched Hang Seng Gold ETF (3170), the first exchange-traded fund to facilitate physical gold redemption at a bank on Thursday, which jumped over 9 percent by midday.
Hang Seng Investment said it also plans to offer tokenised unlisted fund unit options for this ETF, catering to the diverse needs of investors.
This came as gold prices hit a fresh record high at near US$5,600 (HK$43,682) an ounce earlier in the day.
The new gold-themed ETF seamlessly blends the flexibility and liquidity of an ETF with the security of physical commodities, enabling smooth trading, secure storage, and flexible redemption - all conducted entirely within Hong Kong, said Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.
The exploration of distribution through licensed digital asset exchanges will help bridge traditional and digital finance, unlocking new opportunities, he added.
Kelvin Wong Tin-yau, Chairman of the Securities and Futures Commission, said that the SFC welcomes further financial innovation to expand market participation and enhance market resilience, while utilizing frontier tools such as blockchain to prepare for the future.
The listing of a new gold ETF - the first in almost 10 years - underscores Hong Kong Exchanges and Clearing's (0388) continued focus on expanding product ecosystem across asset classes, including commodities, to meet growing demand for diversification and risk‑management tools, said Gregory Yu Hock-ken, HKEX head of markets.
With other gold‑themed ETFs coming to market, HKEX is further broadening the range of precious‑metals products available to investors, Yu noted.
Luanne Lim Hui-hung, executive director and chief executive of Hang Seng Bank, said that the Gold ETF underscores its commitment to supporting Hong Kong's development as a leading international gold trading hub.
