Hong Kong in talks with London Bullion Market Association on gold delivery standards
Hong Kong is in discussions with the London Bullion Market Association on cooperating over good delivery standards, the city's top financial official said. If realised, the move would integrate international standards into Hong Kong's gold market infrastructure. The association will co-host an Asia
Hong Kong is in talks with the London Bullion Market Association (LBMA) on cooperating over good delivery standards, the city's Secretary for Financial Services and the Treasury, Christopher Hui, said on Wednesday.
Speaking at a global precious metals conference in Sorrento, Italy, Hui said that if realised, the cooperation would help integrate internationally recognised standards into Hong Kong's gold market infrastructure, laying a credible foundation for industry participants to engage in market activities.
Hui also announced that the LBMA will co-host an Asia forum with the Hong Kong government and the Hong Kong Precious Metals Central Clearing and Settlement Corporation in April next year. He described the forum as strong recognition of Hong Kong's rapid progress in developing its gold market over the past two years.
During a panel discussion, Hui outlined Hong Kong's "grand gold plan" to global precious metals industry representatives, saying the city had moved beyond the planning stage and fully entered implementation. He noted that the trial operation of the Hong Kong Precious Metals Clearing House had received positive responses. While 11 banks are already temporary direct participants in the clearing system, other banks have also expressed interest in joining, he said.
The government's work to link the clearing system with Hong Kong's real-time payment settlement system to achieve delivery-versus-payment settlement was in its final stage, Hui added. He said the government was actively pursuing various policy initiatives to encourage private sector participation in expanding gold storage capacity and enhancing refining capacity.
On the sidelines of the conference, Hui met with LBMA Chairman Peter Zöllner. The two sides held in-depth discussions on global precious metals market trends and ways to strengthen connectivity between the Hong Kong and London gold markets.