The Financial Services & the Treasury Bureau welcomed the launch of the Shanghai Gold Exchange (SGE)’s first offshore gold delivery vault in Hong Kong and the listing of relevant gold contracts for delivery in Hong Kong on its International Board today.
Secretary for Financial Services & the Treasury Christopher Hui said that the SGE’s decision to establish its first International Board certified vault in Hong Kong offers international investors an option for delivering gold offshore, marking a key stride in the internationalisation of the country’s gold market, extending the global footprint of renminbi-denominated gold trading, and further strengthening Hong Kong’s role in the regional market.
The Hong Kong Special Administrative Region Government is pushing ahead with the development of an international gold trading centre in Hong Kong to tap into new growth areas for financial services as well as to consolidate and enhance the city’s status as an international financial centre.
Mr Hui highlighted that the SGE’s establishment of a certified vault in Hong Kong will attract more international investors to participate in the SGE’s trading and increase gold storage in Hong Kong, thus driving the development of related services, giving impetus to the development of an international gold trading centre.
He added that Hong Kong has unique advantages under the “one country, two systems” principle and is able to provide comprehensive financial, logistics, and shipping services. Coupled with a deep offshore renminbi liquidity pool, international institutional investors will enjoy facilitation in their participation in gold trading with delivery in Hong Kong.
The Hong Kong SAR Government and the Shanghai Municipal Government signed the Action Plan for Collaborative Development of Shanghai and Hong Kong International Financial Centres.
Mr Hui said he looks forward to the further deepening of co-operation, expansion of mutual market access between the two markets, and scaling up of two-way participation between Hong Kong and Shanghai by complementing the advantages of the two leading international financial centres under the “one country, two systems” framework.
