HK eyes gold trading hub with spot, futures & refining ecosystem

One week into the launch of Hong Kong's central gold clearing and settlement system, Secretary for Financial Services and the Treasury Christopher Hui reveals a substantial quantity of gold has been deposited into the system.

As Hong Kong's newly minted central gold clearing and settlement system began trial operations last week, Secretary for Financial Services and the Treasury Christopher Hui speaks with the media over Hong Kong's bid to gain greater clout over Asian-session gold pricing.

And that will hinge on bringing together the world's three major gold-related services in one location -- Hong Kong.

Hui says as London specialises in the spot market, the US in gold futures and Switzerland in gold refining, he hopes these functions can take place within the Asian time zone via the SAR.

To provide all three services, Hong Kong will need not only gold storage facilities but also local gold refining capabilities.

The government aims to ratchet up the city's total gold vault capacity to more than 2,000 tonnes within three years.

But that would still be less than half of London's capacity.

Hui says the UK has spent nearly a century building up its current level of gold reserves and for Hong Kong, the key lies in careful planning and launching each initiative at the right time.

Hui also reveals more than 10 refiners are in talks with the city's Office for Attracting Strategic Enterprises.