Hong Kong signed a memorandum of understanding with the Shanghai Gold Exchange on Monday to build a joint gold ecosystem and expand the special administrative region’s global bullion trading role.
Chief Executive John Lee Ka-chiu hailed the MoU, signed during the first day of the 19th Asian Financial Forum, as “a bright illustration of the city’s gold ambitions”.
“The MoU will set in motion a cross-boundary trade clearing system for the precious metal,” Lee said in his opening remarks at the forum.
Calling the cooperation agreement “a defining milestone in the development of Hong Kong’s gold market”, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said it aims at collaboration and shared development, as well as physical infrastructure and market interconnectivity.
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“The signing of this agreement with the Shanghai Exchange marks the dawn of a new chapter, one in which Hong Kong and Shanghai can join forces to shape the future of our global gold markets,” Hui told the forum.
As part of a whole package of initiatives to bolster the city’s gold trading vision, the Hong Kong Special Administrative Region government-led central clearing system for gold is on track to begin trial operations this year, Hui said.
“HKSAR government is also committed to expanding Hong Kong’s gold storage, targeting a storage capacity of more than 2,000 tones in three years, which will see Hong Kong’s rise as a regional gold reserve power,” Lee said.
The flagship two-day forum, co-organized by the Hong Kong SAR government and the Hong Kong Trade Development Council, gathers government officials and business leaders from over 60 countries and regions, reinforcing Hong Kong’s role as an international financial center.
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It is expected to attract over 3,600 participants, featuring about 80 business delegations from the Chinese mainland, Australia, South Korea, Southeast Asia, Europe, the Middle East and the United States.
“AFF has continued to broaden its scope and enhance its reputation over the years as the platform that demonstrates Hong Kong’s unique roles of a superconnector, super value-adder and supercollaborator,” Frederick Ma, HKTDC chairman, said in his welcome remarks.
The forum also features a special discussion session on gold trading to promote Hong Kong’s development into an international gold exchange and to jointly build a gold market ecosystem with the mainland, bringing new value to the global precious metals market.
