Hong Kong: The Chief Executive of Hong Kong Special Administrative Region (SAR) John Lee Ka-chiu has announced the establishment of an international gold trading market in the SAR, reports rough-polished.expert/en/

As he noted in his policy address, Hong Kong is one of the world’s largest gold import and export markets by volume. According to John Lee, the city’s security and stability give it a distinct advantage as an attractive location for storing physical gold, facilitating the growth of gold trading, settlement and delivery, and potentially turning Hong Kong into a gold trading hub.

“This will spur development of the related industry chain, ranging from investment transactions, derivatives, insurance, storage, to trading and logistic services,” he said.

The government will promote the development of world-class gold storage facilities, facilitating the storage and delivery of spot gold by users and investors in Hong Kong and stimulating demand for related services such as collateral and lending businesses, opening up new areas of growth for the financial sector.

The Financial Services and the Treasury Bureau (FSTB) of Hong Kong will also set up a task force to promote the establishment of an international gold trading hub. This will include, among other things, strengthening the trading mechanism and regulatory framework, promoting the application of advanced financial technologies, and actively exploring with the mainland authorities the inclusion of gold-related products in the mutual market access program.