Hong Kong precious metals clearing to link with currency settlement by year-end
Hong Kong's Precious Metals Central Clearing will connect to a currency settlement system by end-2026, enabling real-time delivery versus payment. The Securities and Futures Commission also aims to add yuan counter to Southbound Stock Connect by July 2027.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu announced that the Hong Kong Precious Metals Central Clearing will be connected to a currency settlement system by the end of the year, achieving real-time delivery versus payment within interbank monetary systems. The Clearing, which saw positive market response since its initial launch in July, has attracted interest from banks to participate.
Hui said further preparations will be made in the months before the official launch, including promoting contracts of yuan gold futures, establishing an industry association and enhancing clearing functions.
The Securities and Futures Commission also aims to add the yuan counter to the Southbound Stock Connect by July 2027, which could offer incentives for companies to issue yuan shares in Hong Kong, Hui added.
Additionally, a Gold Hotline will be set up to provide one-stop support for mainland and overseas gold traders to take part in Hong Kong's gold trading ecosystem, as outlined in the Policy Address.
Hui will depart on Monday night to attend the Global Precious Metals Conference 2026 in Sorrento, Italy, and to visit multiple refineries for gold of international standard in Switzerland. This marks the first time a Hong Kong government official has attended such a conference. Bryan Chan Ping-keung, chief executive of the Hong Kong Precious Metals Central Clearing Company, will also join the visit. Hui will return to Hong Kong on 8 October.