The Treasury Department leverages the advantages of financial infrastructure to develop an international gold trading hub.

Hong Kong is accelerating the establishment of an “International Gold Trading Market,” while Singapore has announced a strategic blueprint today to become the Asian gold trading center, focusing on four key areas: expanding the range of capital market products related to gold, establishing reliable clearing and settlement systems, enhancing vault and logistics standards, and researching the provision of vault services for foreign central banks and sovereign institutions.

A spokesperson from the Financial Services and the Treasury Bureau stated that the bureau is implementing a series of measures to expedite the establishment of the international gold trading market, including promoting the Hong Kong Airport Authority and financial institutions to expand gold storage capacity in Hong Kong, aiming to surpass 2,000 tons within three years, and building a regional gold reserve hub; as well as establishing a central gold clearing system in Hong Kong to provide efficient and reliable clearing services for international standard gold trading. The bureau is also studying tax incentives for qualified institutions engaged in gold trading and settlement in Hong Kong.

The bureau is committed to leveraging the advantages of financial infrastructure to develop Hong Kong into a leading international gold trading hub, which includes establishing a robust and vibrant gold trading market, preparing for future connectivity with mainland China, and deepening cooperation with other international market participants. Bureau Chief Xu Zhengyu met earlier this month with a delegation led by the Minister of Finance of Laos to engage in in-depth discussions on gold market cooperation.

In terms of gold market development, the bureau welcomes opportunities for cooperation with different economies and believes that regional cooperation and complementary development can benefit the entire gold trading ecosystem.

In fact, the bureau has made significant progress in gold market development. In early 2026, the bureau signed a cooperation agreement with the Shanghai Gold Exchange, focusing on establishing a high-level collaborative governance structure for the Hong Kong central gold clearing system and exploring new pathways for physical infrastructure synergy and market connectivity.

The bureau has established the Hong Kong Precious Metals Central Clearing System Limited, fully owned by the Hong Kong SAR government, as the management body for the clearing system. The company’s board members include government representatives, representatives from financial regulatory bodies, as well as representatives from over 10 banks active in the international gold market from mainland China, the United States, Europe, and Oceania, to ensure that market opinions are appropriately reflected. The clearing system is scheduled to commence trial operations within this year.

Additionally, the bureau is drafting legislative proposals to include precious metals, including gold, within the eligible investment scope of relevant funds and single family office preferential tax regimes. The government plans to submit the legislative proposal in the first half of this year, with an expected implementation date starting from the 2025/26 fiscal year.

By maintaining close ties with both the mainland and international markets, Hong Kong will continue to play a unique role as a two-way bridge between the mainland market and the global market, serving as a crucial hub that connects international investors with opportunities in the mainland while also assisting mainland institutions in accessing global markets.