Hong Kong Photo: VCG

The Hong Kong Special Administrative Region (HKSAR) will establish a central clearing system for gold to provide efficient and reliable clearing services for gold transactions, in compliance with international standards, said HKSAR Chief Executive John Lee Ka-chiu on Monday.

The HKSAR's central clearing system for gold is on track to begin trial operations this year. A cooperation agreement regarding gold was signed with the Shanghai Gold Exchange on Monday, according to a release by the HKSAR government's website.

The HKSAR government is also committed to expanding Hong Kong's gold storage, targeting a storing capacity of more than 2,000 tons in three years, said Lee, adding that people will "see Hong Kong's rise as a regional gold reserve hub."

"We will also diversify gold investment and work with the trade to form an industry organization in Hong Kong," Lee said at the Asian Financial Forum (AFF) on Monday, according to a release by the HKSAR government's website.

One of the purposes of establishing a central clearing system for gold in Hong Kong is to provide efficient and credible clearing services for gold transactions that meet international standards, Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Monday.

The global gold trading landscape is undergoing profound adjustments. Currently, London, New York, and Shanghai form a complementary cross-time-zone global trading system, collectively accounting for more than 90 percent of worldwide gold trading volume, data from World Gold Council showed.

"Against this backdrop, cooperation between Hong Kong and Shanghai has taken on new strategic significance," said Yang.

Also at the AFF, the Financial Services and the Treasury Bureau (FSTB) of HKSAR on Monday signed a cooperation agreement with the Shanghai Gold Exchange during the Asian Financial Forum, marking a new milestone in deepening co-operation between the gold markets of Hong Kong and Shanghai, according to a another release on HKSAR government's website.

"In recent years, amid heightened geopolitical uncertainty, inflationary pressures, and ongoing restructuring of the international monetary system, the strategic importance of gold has become even more pronounced. Against this backdrop, deepening co-operation between Hong Kong and Shanghai in the gold sector carries profound significance," Christopher Hui Ching-yu , secretary for FSTB of HKSAR, said on Monday at the agreement signing ceremony.

Hui revealed that this week, a new gold fund will list in Hong Kong. Its key features include leveraging Hong Kong's well-established gold infrastructure for physical gold trading and storage, with the option of physical gold redemption at bank.

A week before, Paul Chan Mo-po, Financial Secretary of HKSAR, said in a post that current over-the-counter spot gold transactions in Hong Kong still require both buyer and seller to handle settlement independently, which is inconvenient. Therefore, Hong Kong is accelerating the establishment of a central gold clearing system as a key piece of financial infrastructure.

"This initiative aims to enhance the reliability and efficiency of gold trading and physical delivery, reduce transaction costs, and increase overall market liquidity," said Chan.

In recent years, international investors have shown a growing demand for diversified allocations beyond US dollar assets. Gold has further strengthened its roles as a central bank reserve asset, an investment product, and a risk-hedging tool, said Chan.


"Gold prices surged by more than 60 percent cumulatively in 2025, marking the largest annual increase since 1979. There is massive demand globally, particularly in Asia, for more diversified, reliable gold storage, trading, clearing platforms, and even pricing mechanisms," said Chan.

Chan revealed that the spot gold trading market in Hong Kong has become significantly more active. As of November 2025, the average daily turnover of 99 Tael Gold on the Hong Kong Gold Exchange surged more than twofold year-on-year, reaching HK$2.9 billion ($371.9 million).


Global Times