Hong Kong gold market push gets global backing, minister to attend Italy conference
Hong Kong's financial services minister says the city's precious metals market development has global support, with 19 London Metal Exchange-accredited warehouses storing over 36,000 tonnes. He will attend a global precious metals conference in Italy this week, marking the first official government
Hong Kong's gold-focused strategy to build a commodity trading ecosystem is gaining international recognition, Financial Services and the Treasury Bureau Secretary Chan Chun-ying told the Legislative Council's financial affairs committee on 5 October.
Chan said the government chose precious metals as the entry point for developing a broader commodity market because of their strong financial attributes, which align with Hong Kong's status as an international financial centre. He noted that the next phase will explore other metals and energy products, with specific models depending on product characteristics and market supply-demand conditions.
The minister said global market participants have shown strong interest in and recognition of Hong Kong's plans for a full-chain deployment of precious metals and commodity markets. He announced he will attend the global precious metals conference in Italy this week, the first time a government official has represented Hong Kong at the event, indicating that the development roadmap has market support.
Chan revealed that 19 London Metal Exchange-accredited non-ferrous metal warehouses have been established in Hong Kong, with storage capacity exceeding 36,000 tonnes. He emphasised the need for talent not only in financial transactions but also in warehouse management and logistics management.
On risk management, Chan said it cannot be separated from derivatives and futures products. He noted that the Hong Kong Stock Exchange is researching the launch of more types of derivatives, such as short-cycle stock options and thematic futures or options.
The minister also highlighted that the five-year Treasury bond futures already launched provide international investors with risk management tools for accessing the mainland Chinese bond market. He said authorities will continue exploring more diversified risk management tools for A-shares.
