Chen Haolian: The target of launching the Gold Central Clearing System operation this year, the Hong Kong Exchanges and Clearing Limited will resume gold futures trading in the coming months.

On May 4th, the Financial Secretary of Hong Kong, Paul Chan, made an opening speech at a meeting of the Legislative Council's Committee on Financial Affairs. He mentioned that Hong Kong is actively promoting the development of the gold and commodity markets from various aspects, including increasing gold storage capacity, building financial infrastructure, and enhancing gold supply. Using this experience as a starting point, Hong Kong aims to gradually promote the development of other commodity markets and establish a comprehensive trading ecosystem. The Hong Kong Precious Metals Clearing System Limited is actively preparing for the establishment of the gold central clearing system, with board members including representatives from financial regulatory agencies and over 10 major banks participating in the international gold market, gathering market opinions and jointly formulating the architecture and rules of the clearing system. The goal is to commence trial operation of the clearing system within this year. Paul Chan mentioned that increasing gold storage capacity is a prerequisite for expanding spot trading, and through supporting the clearing and settlement of gold trading, it will drive the development of the upstream and downstream industry chains. The Chief Executive has set a clear target in the 2025 Policy Address to expand storage capacity in Hong Kong to over 2,000 metric tons within three years, with the Airport Authority initiating a project to expand storage facilities at the airport to the thousand metric ton level; and will also promote and assist financial institutions in enhancing their gold storage capacity in Hong Kong. The Hong Kong Treasury has signed a cooperation agreement with the Shanghai Gold Exchange in January this year to establish a high-level cooperation governance framework, collaborate to promote efficient construction of the clearing system, coordination of physical infrastructure, and market interoperability, facilitating investors from both places to participate in the gold trading market. In terms of gold supply, efforts are being made to encourage gold merchants to establish or expand refineries in Hong Kong, as several internationally certified companies have shown interest in development. Furthermore, the Hong Kong Treasury signed a cooperation memorandum with Shenzhen last year to support collaboration between gold merchants in Hong Kong and refining enterprises in Shenzhen to refine gold with smelting capacity in Shenzhen and export it to Hong Kong for trading and settlement, increasing the size of the local market. In enriching investment tools, Hong Kong has welcomed the listing of two gold exchange-traded funds since January this year, which allows direct ownership of physical gold stored in Hong Kong and provides an option for physical redemption. The Hong Kong Exchanges and Clearing Limited (HKEX) is preparing to restart gold futures trading in the coming months. HKEX will subsequently optimize contract design and improve delivery mechanisms based on this foundation, with details to be announced in due course. Furthermore, supporting the industry to establish industry associations and studying measures to provide tax incentives for qualifying institutions and assist the industry in establishing training frameworks, Hong Kong is building a comprehensive gold ecosystem from multiple aspects. Guided by the national strategy of accelerating the construction of a strong financial country, Hong Kong will actively leverage the unique advantages of "One Country, Two Systems" to deepen connectivity with the mainland market and international cooperation. The Hong Kong SAR Government will draw on the experience of developing the gold trading sector to gradually expand the development of other commodity markets. Since the London Metal Exchange included Hong Kong in its global warehouse network in January 2025, a total of 15 accredited warehouses operated by seven operators have been put into operation, storing approximately 24,000 metric tons of non-ferrous metals. The Bulk Commodity Strategy Committee chaired by the Financial Secretary held its first meeting at the end of last year, focusing on financial innovation, infrastructure construction, industry promotion, and talent development in three major directions.