As Hong Kong ramps up efforts to propel its gold trading ecosystem, the city’s role as a gateway between the Chinese mainland and global markets is flourishing, opening more fresh opportunities than ever for jewelry makers and precious metal manufacturers.

Seeking to build a premier international gold trading hub, the Hong Kong Special Administrative Region government has unveiled plans for a central clearing system and expanded local storage, while encouraging precious metal traders to establish or enlarge refineries in the city.

Among those seizing the opportunity is Point Gold International Ltd, a Shenzhen-headquartered company specializing in metal refining and financial trading services. Chairman Huang Wenbin said the firm leased an 80,000-square-foot site two years ago in the city’s northern Tai Po district to establish a refinery.

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Huang said the company plans to invest approximately $150 million (HK$1.17 billion) in initial capital to expand its international business in the city. Beyond gold, the refinery will also produce platinum and palladium products, he added.  

The company’s Shenzhen facility has already obtained accreditations from recognized organizations including the Shanghai Gold Exchange, and the London Bullion Market Association — the global authority that sets refining standards for precious metals.

Huang said the new refinery in Hong Kong will seek similar qualifications as soon as possible. For now, gold bars are being sent to Point Gold’s Shenzhen base for processing before exporting them back to Hong Kong for international trading, he said.

“We’ve observed that the Hong Kong SAR government has placed greater emphasis on the gold industry in recent years. We hope more people will participate in this market — the more participants there are, the more vibrant it becomes, leading to more business opportunities,” Huang said.

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Huang Wenchan, general manager of Shenzhen Cuilu Jewelry Manufacturing Co Ltd, said Hong Kong’s strategy to foster its gold trading ecosystem provides an excellent window for many mainland manufacturers and brands to expand into international markets.

The company is among thousands of exhibitors at this year’s Hong Kong International Jewellery Show, organized by the Hong Kong Trade Development Council — a statutory body that promotes the city’s trade.

The five-day event, which opened on Wednesday, features 20 pavilions from around the world, including a Hard Pure Gold Pavilion led by the World Gold Council, showcasing 11 mainland exhibitors to promote innovative gold craftsmanship.

“Hong Kong’s plans present a very exciting signal for us, and it can help us explore the potential for expansion,” Huang Wenchan said.

The fair also attracted newcomers like Shenzhen Jinqian Jewelry Co Ltd. General Manager Chen Lu said many foreign customers had shown interest in the company’s products, and several orders were secured.

“The results are far better than my expectations. We gained a larger platform to showcase our brand and built connections with many potential customers. I think it’s really worthwhile (to participate in this fair),” he said.

Contact the writer at gabylin@chinadailyhk.com