DevelopingHong Kong inaugurates trial operation of gold clearing and settlement system
Announcement made by Chief Executive John Lee at Hong Kong FIC & Bond Connect Summit
Hong Kong inaugurated the trial operation of a gold clearing and settlement system on Tuesday, a step towards building the city into a trading hub and price-setter for the precious metal.
The decision was announced by Chief Executive John Lee Ka-chiu at the Hong Kong FIC & Bond Connect Summit.
“The government-owned Hong Kong Precious Metals Central Clearing [Company] will offer a comprehensive suite of services ranging from gold deposits and withdrawals to transaction settlements in the over-the-counter market in Hong Kong,” Lee said.
The first transactions involved multiple banks and mining and jewellery companies.
Lee said Hong Kong was “also considering development of a new renminbi gold futures contract with delivery support from the Shanghai Gold Exchange in collaboration with Bloomberg”.
The gold clearing and settlement system announcement, confirming an earlier report by the South China Morning Post, marks the latest attempt to consolidate the city’s status as a global financial centre.