Standard Chartered Explores Establishing Its Own Gold Storage in Hong Kong, Aligning with City's Ambition to Become a Trading Hub

In response to the Hong Kong government's drive to develop the city into an international gold trading center, Standard Chartered is actively studying the feasibility of establishing its own gold storage facility in Hong Kong.

Standard Chartered Hong Kong, Greater China and North Asia's Head of Financial Markets and Strategic Clients, Eric Tsang, stated that the bank is evaluating different location options, aligning with government policy and meeting client demand.

The Hong Kong government established "Hong Kong Precious Metals Clearing Company Limited" in January this year. Standard Chartered Hong Kong, part of the Standard Chartered group, is a board member of this clearing company.

Tsang noted that Standard Chartered is one of the top three participants in Asia's gold market and one of the few foreign banks with a dedicated gold trading desk in Hong Kong. The bank maintains close communication with the Hong Kong government and is fully committed to supporting its policy goal of establishing Hong Kong as an international gold trading hub.

He explained that Standard Chartered currently provides physical gold trading and related options financing services to its corporate and investment banking clients in Hong Kong. Should the plan for its own storage facility proceed, Hong Kong would potentially become the first market where the group operates its own gold vault, making the bank one of the few with its own storage in the city.

Tsang emphasized that such a move would underscore Hong Kong's strategic importance to the group while supporting government policy and responding to client needs. He added that with its own storage, Standard Chartered Hong Kong could offer comprehensive gold trading services, extending from execution and settlement to storage.

The international spot gold price reached a record high of $5,596 per ounce in late January this year. Tsang revealed that Standard Chartered Hong Kong's gold-related revenue in the first quarter saw high double-digit year-on-year growth.

He pointed out that client interest and inquiries regarding gold have increased since the price rally, reflecting their interest in trading centers outside London, such as those in Asia. With Hong Kong further enhancing its gold trading market infrastructure, he anticipates sustained client demand for gold. The bank will consider expanding its gold trading team in line with future business needs.