Part of Hong Kong's first five year plan to 2030: Why I am now a part owner of physical gold and silver business in Hong Kong. We have vaulting facilities there also. We have just been granted out licence to operate there. More details to follow shortly.
Develop a Commodity Trading Ecosystem. Expedite the Development of an International Gold Trading Market
45. The Government will seize the gold trading market’s momentum and strengthen
its development:
(i) Officially launch Hong Kong’s central clearing and settlement system for gold in the first quarter of 2027.
(ii) The HKEX will announce details of the new RMB‑denominated and physically settled gold futures contracts this year to boost the global influence of the RMB in the pricing of
precious metals.
(iii) The Mandatory Provident Fund Schemes Authority optimised its approval mechanism for gold ETFs in July this year, increasing the flexibility of MPF funds investing in gold ETFs.
(iv) The SFC will enhance the regulatory regime for over‑the‑counter derivatives to facilitate risk and capital management in gold and commodity trading.
(v) The IA will strengthen co‑ordination with the industry in arranging insurance for precious metals, and has launched a dedicated specie insurance hotline to connect policyholders with insurers.
(vi) The HKMA is exploring the possibility of increasing the Exchange Fund’s gold holdings
and participating in Hong Kong’s spot and futures markets. It is also considering gradually transferring its physical gold holdings to designated vaults appointed by the Hong Kong Precious Metals Central Clearing Company Limited.
(vii) The Government will set up a dedicated Gold Hotline to provide one‑stop support for
Mainland and overseas gold traders to take part in Hong Kong’s gold trading ecosystem,
while encouraging the sector to establish an industry association for gold and host a
flagship event in 2027.
(viii) Collaborate with the Financial Services Development Council (FSDC) to launch gold
trading‑related courses featuring full‑chain development and ancillary facility operations
AND
Expand the International Metal Trading and Delivery Network
46. Since the London Metal Exchange (LME) included Hong Kong in its global warehousing
network in 2025, the city’s storage area has exceeded 60 000 square metres, with an inventory of more than 20 000 tonnes of metal to date. We will accelerate the development of a secure and efficient commodity trading hub with international influence:
(i) Implement a half‑rate tax concession for physical commodity trading to attract more
commodity traders to set up or expand their businesses in Hong Kong; explore a proposal
to provide tax concessions for qualifying activities within the gold and commodity trading
ecosystem for consultation with the Legislative Council (LegCo) next year.
(ii) Facilitate the establishment of more LME‑approved warehouses in the Northern Metropolis (NM) by warehouse operators to promote clustering of physical delivery, financing and risk management services.
(iii) The HKEX plans to launch the LME Steel HRC Shanghai contract on the LME in October
to expand international application scenarios of onshore prices and enhance the international influence of China’s futures.
(iv) The HKEX is striving to launch a pilot project for tokenised warehouse‑receipt financing
in collaboration with designated banks in 2027, using physical tracking technologies to
promote the use of commodity inventories as collateral by enterprises in securing liquidity.
(v) The HKEX is establishing a blockchain‑backed, multi‑asset tokenisation platform,
with carbon credits listed on Core Climate2 already incorporated. It will also include
commodity warehouse receipts from LME‑approved warehouses for a pilot next year, to
facilitate the flexible allocation of collateral and cross‑collateralisation in the market.
(vi) The Customs and Excise Department (C&ED) will explore how to facilitate the customs
clearance for commodities.
(vii) Encourage the International Organization for Mediation (IOMed) to explore the
establishment of a special panel of mediators for commodity trading. This would lower
the risk of cross‑border transactions and attract more international traders and financial
institutions to use Hong Kong as a base for trading and settlement.