Hong Kong to establish global gold trading hub
Date
10/17/2024 12:42:05 AM
(MENAFN) Hong Kong is going to leverage its power in Gold import and export to establish itself into a global gold trading hub, John Lee, chief executive of the Hong Kong Special Administrative Region (HKSAR), stated while giving his third policy speech on Wednesday.
Pointing out that Hong Kong is placed among the biggest import and export markets for gold by volume in the world, Lee declared that the present complication in geopolitics underlines Hong Kong's superiority in security and stability, and therefore an eye-catching place for lenders for gold storage, encouraging related activities like gold trading, settlement, as well as delivery.
"This will spur development of the related industry chain, ranging from investment transactions, derivatives, insurance, storage, to trading and logistic services," Lee noted.
The Hong Kong Special Administrative Region (HKSAR) government is set to enhance the development of top-tier gold storage facilities to streamline the storage and delivery of spot gold for users and investors in Hong Kong. This initiative aims to stimulate demand for related services, such as collateral and loan operations, thereby opening new avenues for growth within the financial sector, according to Lee.
To advance the creation of an international gold trading center, the financial services and treasury bureau of the HKSAR government will establish a working group. Lee noted that this effort will involve various initiatives, including enhancing the trading mechanisms and regulatory frameworks, promoting the use of advanced financial technology, and actively collaborating with mainland authorities to explore the inclusion of gold-related products in the mutual market access program.
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