Hong Kong is accelerating its development as an international gold trading hub.
Chief Executive John Lee announced on July 7th that the Hong Kong Gold Central Clearing System began trial operations on that day. He also revealed that Hong Kong Exchanges and Clearing Limited (HKEX) will sign a memorandum of understanding with the People's Bank of China on cross-border Renminbi payment and clearing, while considering the development of a new Renminbi-denominated gold futures contract.
Coinciding with the launch of the new system, HKEX announced a one-year fee waiver for gold futures-related charges, effective from July 6th. This move aims to invigorate the local gold futures market and reduce participation costs.
Lee had previously stated that establishing the Hong Kong Gold Central Clearing System is intended to "provide efficient and credible clearing services for international standard gold trading." He also invited the Shanghai Gold Exchange to participate, "to prepare for future connectivity with the mainland market."
System Launch and Supporting Policies
The Gold Clearing and Settlement System officially commenced operations on July 7th, providing a crucial infrastructure upgrade for Hong Kong's gold market. Simultaneously, HKEX and the People's Bank of China will sign the memorandum of understanding on cross-border Renminbi payment and clearing, laying the institutional groundwork for the use of Renminbi in gold transaction settlements.
In his fourth policy address delivered in 2025, John Lee stated he would "enrich gold investment instruments, assist issuers in launching gold funds, support the development of new products such as tokenized gold investment products." He also pledged to "support the industry in establishing a gold industry association to build a communication platform with the government and regulators, strengthen promotion and attract clients from Belt and Road countries and regions, and enhance talent training."
Warehousing and Refining: Building a Regional Gold Reserve Hub
Regarding physical infrastructure development, Lee set clear quantitative targets in his fourth policy address. He stated he would "promote the Hong Kong Airport Authority and financial institutions to expand gold warehousing in Hong Kong, with the goal of exceeding 2,000 tonnes within three years to build a regional gold reserve hub."
Concurrently, he proposed to "promote gold merchants to establish or expand refineries in Hong Kong, and study with the mainland the processing of imported materials there, with refined gold exported to Hong Kong for trading and delivery purposes." This aims to establish a complete industrial chain from refining to trading.
This report will be updated as more information becomes available.
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