FINANCE

Hong Kong Accelerates Push to Become Gold Trading Hub

Published: Oct. 1, 2025 2:38 p.m. GMT+8

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Investors are buying more gold as global uncertainty increases. Photo: VCG

Hong Kong is advancing its bid to become an international gold trading hub, eyeing yuan-denominated products to ride the global gold boom and bolster the internationalization of the Chinese currency.

Investors are diversifying into precious metals as uncertainty rises amid a rapidly changing international landscape, said Christopher Hui, secretary for Hong Kong’s Financial Services and the Treasury, in an interview with Caixin Monday.

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Hong Kong is aiming to become an international gold trading hub, focusing on yuan-denominated products and enhanced gold storage, targeting over 2,000 tonnes capacity in three years (up from 150 tonnes in late 2024).
A central gold clearing system will be trialed in 2026, supporting instant yuan settlements and deepening cooperation with the mainland, including with the Shanghai Gold Exchange.
Gold trading volume surged by 68.7% (to 2.5 million troy ounces) on the Hong Kong Gold Exchange in Q2 2024 amid global gold demand growth.

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Who’s Who

Shanghai Gold Exchange: The Shanghai Gold Exchange (SGE) has a relationship with Hong Kong to integrate their gold markets. In June, the SGE opened its first offshore physical gold delivery vault in Hong Kong. This move aims to attract more international investors to participate in SGE's trading and increase gold storage in Hong Kong. Hong Kong's Chief Executive also plans to work with the SGE for mutual market access with the mainland.

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What Happened When

Late 2024：: Gold storage capacity in Hong Kong stood at 150 tonnes.

June 2025：: The Shanghai Gold Exchange opened its first offshore physical gold delivery vault in Hong Kong.

August 2025：: Hong Kong’s Legislative Council Secretariat published a report noting that average transactions of U.S. dollar-denominated Loco London Gold traded on the Hong Kong Gold Exchange increased by 68.7% from Q3 2024 to Q2 2025.

September 2025：: Hong Kong government published a list of tasks specifying the initial trial run of the gold clearing system is expected in 2026.

September 2025：: Hong Kong Chief Executive John Lee published the Policy Address, stating plans to work with the Shanghai Gold Exchange to prepare for mutual market access with the mainland.

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