"Challenging Hong Kong"? Singapore plans to launch a gold clearing system by the end of the year.

According to media reports, Singapore plans to launch a gold clearing system this year to strengthen its position as a global hub for precious metal trading. On June 15th, Deputy Prime Minister of Singapore and Chairman of the Monetary Authority of Singapore, Tharman Shanmugaratnam, stated that the Singapore Exchange will establish an over-the-counter clearing mechanism by the end of 2026, with interbank trading expected to gradually start from next year. Market sources have indicated that several international financial institutions are participating in this initiative. DBS Group, OCBC Bank, UOB, ICBC Standard Bank, JPMorgan, and Deutsche Bank will sign a memorandum of understanding with the Singapore Exchange on Monday to become the first batch of clearing members. Tharman Shanmugaratnam, speaking at the 9th Asia Pacific Precious Metals Conference (APPMC) in Singapore on Monday, stated that Singapore is not seeking to replace existing gold trading and liquidity centers. Instead, Singapore aims to be a trusted node in the global gold ecosystem, connecting regional demand with global liquidity and supporting market activity during Asian trading hours. He further mentioned that Singapore's clearing system will follow industry-standard London Good Delivery framework, as well as kilobar delivery and settlement standards used by major exchanges in Chicago and Shanghai. He also announced that the Monetary Authority of Singapore intends to expand the tax-exempt range for institutional investors and family offices investing in physical precious metals. Meanwhile, Hong Kong, as another major financial center in Asia, is also actively advancing related plans to meet the strong demand for precious metals in the market. The Hong Kong Bullion Central Clearing System is expected to be ready in July this year. 11 banks, including 5 Chinese banks and 6 international banks, have been appointed as directors of the operating company Hong Kong Interbank Clearing Limited. Notably, JPMorgan is also a director of the operating company. In addition, Standard Chartered Hong Kong, as a director of the operating company, is studying the feasibility of setting up a gold vault in Hong Kong. Singapore's latest move intensifies its competition with Hong Kong for the status of being the main hub for regional gold trading. Both Hong Kong and Singapore have been advancing related plans in recent months. The Asian region has always been an important market for global gold consumption and investment, and with increasing geopolitical uncertainty and persistent inflation pressures, the appeal of precious metals as a safe haven asset is growing. By simultaneously enhancing the gold market infrastructure, Singapore and Hong Kong aim to provide more comprehensive and efficient trading and clearing services to local and foreign investors, further solidifying their position in the international financial market.