[Gold Trading] Chief Executive John Lee: Hong Kong’s Gold Central Clearing System begins trial operation and is researching and developing a new renminbi gold futures contract

Chief Executive John Lee said on Tuesday (7th) that when attending the Hong Kong Fixed Income and Currency Summit and the Bond Connect Forum, Hong Kong’s Gold Central Clearing System will begin trial operation today. Hong Kong Precious Metals Central Clearing Company Limited, wholly owned by the government, will provide a full suite of services, covering everything from the deposit and withdrawal of gold to transaction settlement in Hong Kong’s over-the-counter market.

Lee said that the first batch of gold storage and the first transaction settlement have been completed, involving multiple banks and their customers, including mining companies, refiners, jewelers, and other investors.

Lee pointed out that in the current global situation marked by geopolitical crises and increasing macroeconomic volatility, gold has become one of the core pillars of liquidity and risk management. The launch of Hong Kong’s Gold Central Clearing System enables Hong Kong to take a key step forward in building a comprehensive gold trading ecosystem. Hong Kong is working with the Shanghai Gold Exchange to establish simplified mechanisms for participants to use their gold holdings and carry out transaction settlement in both the Hong Kong and Shanghai markets. At present, three banks have already participated, and the relevant two-way transfers will be completed within today.

Lee also said that HKEX (00388) has optimized its U.S. dollar gold futures contracts, and Hong Kong is also studying and developing new RMB gold futures contracts, with delivery support provided by the Shanghai Gold Exchange. In addition, the authorities are collaborating with Bloomberg to introduce a gold price quotation ticker called “HAU” for gold traded and settled in Hong Kong, which will ensure that global market participants can access Hong Kong’s gold prices in real time.

Lee emphasized that the goal is to build a highly mature gold trading market in Hong Kong, including significantly strengthening Hong Kong’s gold storage and related facilities in the coming years. The Hong Kong government is also considering providing tax incentives to eligible institutions conducting gold trading and settlement in Hong Kong.

Paul Chan: Trial Operation of the Gold Central Clearing and Settlement System Is an Important Step Toward Developing Hong Kong’s Gold Trading Infrastructure

Financial Secretary Paul Chan said that the national “14th Five-Year Plan” outline clearly calls for supporting Hong Kong to build a bulk commodities trading ecosystem. The trial operation of the Gold Central Clearing and Settlement System today is an important step in developing Hong Kong’s gold trading infrastructure.

Chan said that, in line with a series of measures including promoting physical delivery, developing investment products, derivatives and risk management tools, providing tax incentives, and deepening connectivity and interconnection with the mainland gold market, the Hong Kong government is committed to building a vibrant gold trading ecosystem. This will further enhance the substance, depth, and breadth of Hong Kong’s financial market, create new investment opportunities for investors both at home and abroad, and inject new momentum into the development of the financial industry.