The Hong Kong Special Administrative Region and Laos on Monday signed a memorandum of understanding to foster gold market cooperation by facilitating access and strengthening financial market linkages.

In a speech delivered during the signing ceremony in Vientiane, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said the MoU complements the HKSAR’s accelerating development as a leading gold trading, clearing, and reserve hub for Asia and beyond.

“The memorandum of understanding we are about to sign marks a milestone in the deepening friendship and economic partnership between Hong Kong and Laos,” Hui said.

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“Through this partnership, we will work together to realize a seamless, efficient, and trusted gold corridor that benefits producers, refiners, traders, and investors in both our economies,” he added.

Under the MoU, the SAR will promote physical gold flows by facilitating access for qualified Lao gold owners to Hong Kong's accredited refining network and encouraging the use of refined gold bars meeting international standards.

Leveraging its capital markets and infrastructures, Hong Kong will strengthen financial market linkages to provide Lao market participants with liquidity, efficient price discovery, and international capital, Hui said.  

“We will also pursue joint international promotion across Belt and Road partner countries, foster talent development and fintech collaboration including tokenization solutions, enhance regulatory collaboration on AML (anti-money laundering) and best practices, and promote a conducive business environment,” he added.

Hui noted that Hong Kong's new central gold clearing and settlement system started trial operation earlier this month, while a comprehensive package of targeted initiatives was announced to support the city’s gold market development.

These include a cooperation initiative with the Shanghai Gold Exchange, the launch of a new HAU price ticker, expansion of storage capacity to beyond 2,000 tonnes in three years' time, diversification of gold investment products such as exchange-traded funds and futures, exploration of tax incentives, coordinated insurance arrangements, and the establishment of an industry-led trade association.

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“These steps closely align with our country's 15th Five-Year Plan, and will support Hong Kong in building and enhancing our commodity trading ecosystem,” Hui said.

“By combining Laos' natural gold endowment with Hong Kong's world-class infrastructure, expertise, and international connectivity, we can transform resources into investable, transparent assets that drive sustainable economic growth for both markets.”