Hong Kong secures nod for Qianhai metal vault
Approval for HK$1b warehouse and moving forward the launch date of the Shanghai gold market signal Beijing's keenness on liberalisation push
The mainland is speeding up liberalisation of its gold market, granting approval to the Hong Kong-based gold bourse to establish a HK$1 billion metals vault in Qianhai while moving forward the launch date of its Shanghai international gold market to tomorrow.
The Chinese Gold & Silver Exchange Society had gained approval from the Shenzhen government and the People's Bank of China to set up a precious metals vault in the Qianhai special economic zone in Shenzhen, society president Haywood Cheung Tak-hay told the South China Morning Post yesterday.
A spokesman for the Shanghai gold bourse declined to comment yesterday on the launch date or the reasons for moving the date forward.
"These latest moves reflect the fact that the central government is very keen on using the special economic zones in Shanghai and Qianhai to open its gold markets to international investors," Cheung said.
"China will not remove all restrictions on its gold and currency markets immediately for fear of losing control, but it will allow international investors to trade in the special economic zones.
"Hong Kong has to capture this opportunity. I am discussing with executives of the Shanghai Gold Exchange a potential link-up in the form of a gold through train to allow investors to conduct cross-border trading of gold products between Hong Kong and Shanghai."
Rival Singapore had delayed the launch of its own gold contract to October, Reuters reported. The 25kg contract was set to be launched on the Singapore Exchange but the bourse ran into technical issues in setting up the trading system.