Source: Hong Kong Government special administrative region
The Financial Secretary, Mr Paul Chan, said, “The National 15th Five-Year Plan incorporates explicit support for Hong Kong in establishing a commodity trading ecosystem. The commencement of the trial operation of the gold central clearing and settlement system today marks a significant step forward in developing Hong Kong’s gold trading infrastructure. Along with a series of measures to promote physical delivery, develop investment and derivative products as well as risk management tools, provide tax concessions, and deepen connectivity with the Mainland gold market, we are committed to building a thriving gold trading ecosystem. This 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.” The Board of Directors of the HKPMCC comprises the Government, the Shanghai Gold Exchange, regulators, and 11 banks to fully incorporate market feedback. Meanwhile, Bank of China (Hong Kong) Limited has been appointed as the settlement institution and designated vault of the system, operating under the oversight of the HKPMCC.
In tandem with the commencement of the trial operation, the first batch of gold has been successfully deposited into the designated vault, and the first batch of trading and settlement activities has also been completed. The trial operation has received strong support from key market participants, including banks and financial institutions, mining companies, refiners, jewellers, and institutional participants. A list of key participants in the trial operation is set out in the Annex.
The Government is in the process of assisting the industry to establish an industry-led trade association with a view to consolidating resources, strengthening international promotion efforts, and fostering closer ties with global stakeholders.