Hong Kong pushes ahead with gold market plans, clearing system to launch in Q1 2027
Hong Kong is building an international gold trading market. The gold clearing and settlement system, launched in July 2026, will formally start in the first quarter of 2027. The city is also studying boosting gold holdings in its foreign exchange reserves and expanding investment schemes to include
The Hong Kong government is pressing ahead with plans to establish the city as an international gold trading hub. The Hong Kong Gold Central Clearing and Settlement System, which began a trial run in July 2026 under the government-owned Hong Kong Precious Metals Central Clearing and Settlement Company, will formally launch in the first quarter of 2027, according to the 2026 Policy Address.
During the trial, 11 banks served as direct participants, providing over-the-counter clearing and settlement services for internationally standard gold transactions. The government said the market response had been positive. Before the formal launch, the system will be linked to the Real-Time Gross Settlement system to enable delivery-versus-payment settlement, integrating gold trading with physical delivery.
The government is also discussing cooperation with the London Bullion Market Association on adopting the Good Delivery standard, which would integrate internationally recognised standards into Hong Kong's gold market infrastructure.
In response to a legislative question, the government said it had maintained communication with the Hong Kong Gold Exchange, formerly the Chinese Gold and Silver Exchange, which was founded in 1910 and restructured into a company in 2025. The 2026 Policy Address also proposed the establishment of a gold industry association, and the Financial Services and the Treasury Bureau is assisting a preparatory group in discussing the association's composition, membership and financial arrangements.
On investment, the government has submitted an amendment bill to expand qualifying investment under the tax incentive regimes for funds and single-family offices to include precious metals. The bill is expected to resume second-reading debate this year. If passed, the changes would apply from the 2025/26 tax year. The government also said it would continue reviewing the New Capital Investment Entrants Scheme, including eligible asset categories, and assess its effectiveness in due course.
The Hong Kong Monetary Authority is studying the适度 increase of gold holdings in the Exchange Fund and participation in Hong Kong's spot and futures markets, as announced in the 2026 Policy Address. It is also working to gradually transfer existing gold inventory to warehouses designated by the Hong Kong Precious Metals Central Clearing and Settlement Company. The HKMA said it would not disclose details of individual Exchange Fund assets or their allocation.