Hong Kong is putting gold at the centre of its push to become a global commodities trading hub, with officials prioritising plans for an international gold trading centre alongside a broader strategy to expand the city’s role in physical trade, derivatives and logistics.
The government’s newly formed Commodity Strategy Committee held its first meeting on Monday under Financial Secretary Paul Chan Mo-po, as Hong Kong looked to build out a commodities ecosystem that would generate new growth beyond traditional finance.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu told a mainland media outlet that developing an international gold trading centre would be a priority.
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Hong Kong planned to establish a gold central clearing system and a gold industry association next year, and to deepen cooperation with the Shanghai Gold Exchange to expand its influence in international gold pricing, Hui said.
Hui also outlined a proposed “Hong Kong import – Shenzhen refining – overseas re-export” model aimed at attracting overseas gold refiners, adding that some firms were already exploring the establishment of refineries in the city.
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Chan told Monday’s committee meeting, meanwhile, that “Hong Kong had enormous potential to develop its commodities market”, citing the free flow of capital, goods and information under “one country, two systems”.