Hong Kong's Gold Hub Ambitions Backed by New Clearing System
Hong Kong is positioning itself as a superconnector between mainland China and international bullion markets.
Quick Look
Hong Kong strengthens its status as a global gold jewellery and bullion hub with a new central clearing and settlement system and a delivery connect with the Shanghai Gold Exchange.
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Why It Matters
Hong Kong has long served as a major hub for gold jewellery due to its duty-free status and proximity to mainland China.
For decades, Hong Kong has been a hub for gold jewellery. Brands such as Chow Tai Fook and Chow Sang Sang have drawn buyers from the world over, aided by the city’s duty-free status and its proximity to one of the world’s largest gold-consuming markets.
The doubts, however, began to fade in early July, when the city announced the launch of a central clearing and settlement system, alongside a delivery connect with the Shanghai Gold Exchange.
“Hong Kong’s unique value is to be the superconnector and super value-adder between mainland China’s gold market and international bullion markets,” said Stephen Law Cheuk-kin, president of the Hong Kong Institute of Certified Public Accountants (HKICPA).
“The mainland is one of the world’s most important gold-consuming, importing and producing markets, while Hong Kong provides international capital, global banks, insurers, commodity traders, sophisticated legal and professional services, and multi-currency funding and hedging capabilities.”
Open Questions
- How will international traders adopt the new clearing system?
