Hong Kong's Potential as a Gold Trading Hub Highlighted by Chief Executive

Hong Kong Chief Executive John Lee has identified the expansion of the gold trading center as a significant opportunity for the region's financial diversification. According to RTHK, Lee emphasized in an interview with Hong Kong Economic Journal and Now TV that while Hong Kong's stock market has seen considerable success, the increasing complexity of global politics has led investors to favor gold for its safe-haven qualities. Lee noted that during last year's policy address consultations, it became evident that many mainland institutional investors are actively involved in gold trading. These investors not only trade domestically but also have substantial demand for international gold markets, making them key participants in the global gold market. Establishing Hong Kong as a gold trading hub in the Asia-Pacific region would facilitate physical gold delivery for mainland investors. Currently, Hong Kong's gold trading market operates on a membership basis, which limits participation. Lee envisions a future where gold trading is as accessible as stock trading, allowing investors from various regions to participate. This would require the development of an efficient and reliable settlement system. Additionally, Lee mentioned the goal of establishing a gold storage facility in Hong Kong, aiming to surpass 2,000 tons within three years to support the future gold trading settlement system. Lee believes that if Hong Kong becomes a gold trading center, it would lead to increased trading, settlement, and physical delivery activities in the region, creating a significant multiplier effect. This would not only boost the development of financial products but also create more opportunities for professional services, making it a win-win policy. He also commented on the investment market, noting that while some investors are optimistic, others are pessimistic. Savvy investors will bet on the right stocks, while some may misjudge the situation. Lee suggested that some negative comments might stem from competitors' jealousy or political motives. He added that overseas investors he has interacted with in recent years have a positive view of Hong Kong, which remains the world's third-largest financial center. Last year, Hong Kong regained its position as the top global market for initial public offering fundraising.