Chief Executive John Lee announced on Tuesday the launch of a trial operation of a new gold trading and clearing system, in a key step towards the city's goal of becoming a major bullion trading hub.

Speaking at the Hong Kong FIC & Bond Connect Summit, Lee said the system would offer comprehensive services, covering gold deposits and withdrawals, to transaction settlements for the over-the-counter market in the SAR.

He added that the initial gold deposits and first transaction have been settled with the participation of multiple lenders, mining firms, refiners, jewellers and other investors in "milestone" trades.

"In a world beset with geopolitical crises and macroeconomic volatility, gold is becoming one of the key pillars for liquidity and risk management," Lee told participants.

"The launch of Hong Kong's central clearing system for gold will create the solid foundation, allowing us to take the next major step – and that's building a comprehensive gold trading ecosystem in Hong Kong, one that benefits a world of investors and institutional capital seeking safe-haven assets."

The system is managed by the government-owned Hong Kong Precious Metals Central Clearing, with board members coming from 11 banks, regulatory bodies and the Shanghai Gold Exchange.

Lee said Hong Kong would also introduce the initial phase of a so-called "Delivery Connect" – in partnership with Shanghai Gold Exchange – under the new infrastructure.

The scheme would help link the physical liquidity pools of both markets.

"It creates a streamlined mechanism for participants, allowing them to use gold holdings to settle transactions in both the Hong Kong and Shanghai markets," Lee said.

A new gold price ticker tracking Hong Kong gold prices – called Hau – will also be accessible to global investors, offering a reference rate in the international market in collaboration with Bloomberg.

Meanwhile, the Hong Kong Exchanges and Clearing (HKEX) has also relaunched its US dollar gold futures contract, the chief executive added.

Looking ahead, he said the SAR would work to further strengthen the city's gold storage and refining facilities in the coming years, while seeking to offer tax benefits for eligible institutions looking to conduct gold trades and settlements in the city.

Authorities would also consider developing a new renminbi gold futures contract, with delivery support from the Shanghai Gold Exchange.

The city's pension fund regulator, at the same time, would seek to "optimise its approval mechanism" to allow more residents to use their mandatory provident fund savings to be invested in gold exchange-traded funds, according to a government statement.

"The government will submit the relevant amendment bill to the Legislative Council in the fourth quarter of this year to enhance MPF fund investment regulations, which will include relaxation of restrictions on MPF fund structures," the statement reads.

Commenting on the measures, Financial Secretary Paul Chan said the launch of the new gold clearing system marks "a significant step forward" in developing the city's gold trading infrastructure.

He added that the country's 15th Five-Year Plan also offered "explicit" support for Hong Kong moves to establish a commodity trading ecosystem.

"[These measures] will further enhance the richness, depth and breadth of our financial markets, create new investment opportunities for local and overseas investors, and inject new momentum into the development of the financial sector," Chan said.

The government also said that officials would closely monitor the trial operation of the system, and identify areas for enhancement before the official commissioning of the system.
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Last updated: 2026-07-07 HKT 14:17



Edited by Tony Sabine