Hong Kong develops gold trading hub and commodity ecosystem

Hong Kong is advancing efforts to establish itself as an international precious metals and commodities trading hub. Financial Secretary for Financial Services and Treasury, Paul Wyman Tsang, announced that the government is building a comprehensive commodity ecosystem, using the gold market as a primary entry point. Key developments include the construction of a 100,000-square-foot precious metals refinery in Tai Po by Dajin International, expected to be completed by the end of this year.

To support this infrastructure, the Hong Kong Gold Central Clearing and Settlement System began trial operations in July and aims for official launch in the first quarter of 2027, with Bank of China Hong Kong appointed as the settlement institution. The government also plans to introduce a ‘gold hotline’ to assist domestic and international traders and is researching tax incentives for qualified gold trading and settlement institutions.

In parallel, Hong Kong Exchanges and Clearing (HKEX) is focusing on diversifying its asset ecosystem. CEO Bonnie Chan stated that the exchange is exploring the development of a multi-asset tokenization platform, using commodities and carbon credits as initial pilots. HKEX is also researching ways to extend trading hours for derivatives and is working to enhance the Fixed Income, Currencies, and Commodities (FICC) ecosystem to promote RMB internationalization.