Hong Kong gold clearing targets Q1 launch
SingTao · 1 SOURCESabout 2 hours ago5 MIN
Summary
Hong Kong is accelerating its plan to build an international gold trading hub, with the central gold clearing system set to expand from physical-only settlement to delivery-versus-payment by the end of this year. Secretary for Financial Services and the Treasury Christopher Hui Ching-yu (許正宇) said on Sunday that the clearing company has already hired a chief executive and is targeting formal operations in the first quarter next year.
Key Points
- Hui said the central gold clearing system has been in trial operation for about three months, focusing on settlement of physical gold deliveries, with smooth technical performance and sizeable delivery volumes.
- By the end of this year, the platform is due to add cash settlement connectivity for delivery-versus-payment and begin promoting renminbi-denominated physically delivered gold futures contracts to the market.
- Hui said the clearing company, which he chairs, has support from the Shanghai Gold Exchange and 11 board banks, including five Chinese-funded and six foreign banks.
- The government is pushing a full gold industry chain covering storage, refining, trading and settlement, while also planning a government-recognised gold industry association.
- Hui said major refiners from mainland China and Switzerland have decided to establish operations in Hong Kong, either through local partnerships or by building new facilities.
Why It Matters
If the system moves from physical settlement to delivery-versus-payment on schedule, Hong Kong would add a more complete post-trade infrastructure for gold and strengthen its pitch as an Asian hub linking regional liquidity with international standards. Hui also tied the project to practical demand for secure storage, refining and over-the-counter activity, while stressing that market access will run through 11 banks under anti-money laundering requirements.