On October 16, 2024, Chief Executive John Lee Ka-chiu announced plans for Hong Kong to develop an international gold trading market, leveraging the city's security and stability as key advantages.
During his policy address, Lee highlighted Hong Kong's position as one of the world's largest gold import and export markets by volume. He emphasized that the city's secure environment makes it an attractive location for physical gold storage, which could enhance trading, settlement, and delivery activities.
The initiative aims to stimulate growth in related industries, including investment transactions, derivatives, insurance, storage, trading, and logistics services.
The government plans to promote the establishment of world-class gold storage facilities, facilitating the storage and delivery of spot gold for users and investors. This move is expected to increase demand for services related to collateral and loans, thereby opening new avenues for growth in the financial sector.
The Financial Services and the Treasury Bureau (FSTB) will form a working group to advance the creation of the international gold trading center. This group will focus on enhancing the trading mechanism and regulatory framework, promoting the use of advanced financial technology, and exploring opportunities with mainland authorities to include gold-related products in mutual market access programs.