Explainer | Why Hong Kong is turning to Shanghai to build a gold hub
As Hong Kong and Shanghai deepen cooperation in the gold market, officials are hailing the agreement as ‘the dawn of a new chapter’
Hong Kong has struck a deal with the Shanghai Gold Exchange (SGE) to deepen cross-border connectivity in bullion trading, as the city steps up efforts to build a broader gold ecosystem spanning trading, clearing and storage.
The agreement comes as gold prices hit a record high of US$5,110 per ounce on Tuesday morning, buoyed by geopolitical tensions and growing expectations of lower US interest rates, which have revived demand for the precious metal as a safe-haven asset.
In this explainer, the Post breaks down what the new accord changes – and whether it could eventually put Hong Kong on the same footing as rival gold hubs in London, New York and Switzerland.
Why the Shanghai Gold Exchange matters
Founded in 2002 by the People’s Bank of China, the SGE is the mainland’s only official exchange for trading gold, silver and platinum. It launched an international board in 2014, according to the exchange.