ExclusiveHong Kong to launch long-awaited gold clearing and settlement system next week: sources
The city plans to process its first gold settlement on Tuesday, according to those familiar with the matter
Authorities plan to process the first gold settlement through the new system on Tuesday, after deal-making data was expected to be input into the system on Monday, two separate sources told the South China Morning Post.
“We have seen a lot of gold leave London, the US and Europe, and large bars have been flown into Asia in anticipation of this,” the source said. “It could create some volatilities in the London gold market in the short term as the market sort of rebalances.”
Hong Kong could move from being a gold-price taker to a price maker if the city gains more subscriptions from global and local banks, according to the source.
Another source, who is an executive of one of the banks that will participate in the clearing system, told the SCMP that the bank was preparing to start making deals with gold traders next week.
“The preparatory work has entered its final stage and trial operation of the clearing system is scheduled to commence within this year to ensure that the services of the clearing system remain attractive and are operationally stable,” a spokeswoman for the Financial Services and the Treasury Bureau (FSTB) said in a statement to the SCMP.