China Opens First Offshore Gold Vault to Attract Global Investors
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The Shanghai Gold Exchange (SGE) has opened its first offshore physical gold delivery vault in Hong Kong, in a strategic move to broaden international participation and amplify China’s expanding role in the global bullion trade.
Operated by Bank of China (Hong Kong) Ltd., the facility represents a significant move toward integrating China’s gold market with the international financial system. By offering physical settlement in a globally connected financial center, the exchange aims to increase the appeal of its yuan-denominated contracts and bolster cross-border liquidity.
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- The Shanghai Gold Exchange opened its first offshore physical gold delivery vault in Hong Kong, operated by Bank of China (Hong Kong).
- The initiative includes new yuan-denominated gold contracts deliverable in Hong Kong and temporary waiver of related fees to boost international participation.
- SGE's International Board trading volume rose from 45.5 billion yuan in 2014 to 2.52 trillion yuan in 2023, with 106 international members from 16 countries and regions.
- Bank of China (Hong Kong) Ltd.
- Bank of China (Hong Kong) Ltd. operates the Shanghai Gold Exchange's (SGE) first offshore physical gold delivery vault in Hong Kong. This initiative aims to integrate China's gold market with the international financial system, increasing the appeal of yuan-denominated contracts and boosting cross-border liquidity for the SGE.
- 2014：
- The SGE’s International Board was established, allowing international investors to trade and take physical delivery at three designated mainland vaults in Shanghai and Shenzhen.
- 2023：
- Trading volume on the SGE International Board reached 2.52 trillion yuan.
- After recent directives in 2024 and 2025：
- Momentum for establishing an offshore vault accelerated following directives from the People’s Bank of China and other top financial authorities to expand the global reach of SGE products and develop overseas delivery centers.
- 2025：
- The Shanghai Gold Exchange (SGE) opened its first offshore physical gold delivery vault in Hong Kong.
- 2025：
- The SGE unveiled two new yuan-denominated gold contracts that can be physically delivered in Hong Kong, waiving storage, deposit, and withdrawal fees at the Hong Kong vault through the end of 2025.
- As of 2025：
- The number of international members on the SGE International Board rose to 106, spanning 16 countries and regions.
- CX Weekly Magazine
Jun. 27, 2025, Issue 24
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