In FocusGolden hour: why Hong Kong may finally succeed in becoming precious metal’s trading hub
De-dollarisation tailwinds, ecosystem buildout and mainland China’s support plus foreign backing give city’s ambitions credible momentum
For decades, Hong Kong has been a hub for gold jewellery. Brands such as Chow Tai Fook and Chow Sang Sang have drawn buyers from the world over, aided by the city’s duty-free status and its proximity to one of the world’s largest gold-consuming markets.
The doubts, however, began to fade in early July, when the city announced the launch of a central clearing and settlement system, alongside a delivery connect with the Shanghai Gold Exchange.
“Hong Kong’s unique value is to be the superconnector and super value-adder between mainland China’s gold market and international bullion markets,” said Stephen Law Cheuk-kin, president of the Hong Kong Institute of Certified Public Accountants (HKICPA).
“The mainland is one of the world’s most important gold-consuming, importing and producing markets, while Hong Kong provides international capital, global banks, insurers, commodity traders, sophisticated legal and professional services, and multi-currency funding and hedging capabilities.”