Hong Kong's Potential as a New Economic Financing Hub Highlighted

Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, has expressed optimism about Hong Kong's potential to become a new economic financing center. According to RTHK, Hui noted that mainland enterprises already possess competitiveness overseas and are expected to use Hong Kong as a financing platform for internationalization. In an interview with a local newspaper, Hui mentioned that with the launch of the Hong Kong Gold Settlement service within the year, the spot market will be ready. He suggested that the existing gold futures contracts at the Hong Kong Stock Exchange might need adjustments or the introduction of new products to align with market developments. Hui revealed that over 10 domestic and international banks and industry players have joined the Hong Kong Gold Settlement initiative, which will conduct over-the-counter settlement operations in collaboration with warehouses. He did not rule out the possibility of expanding the settlement service to include other metals in the future. With the establishment of the refining company MKS PAMP in Hong Kong, Hui hopes to attract more gold merchants to the region. The Secretary emphasized the importance of expanding the market for Hong Kong Gold Settlement, targeting promotion in Southeast Asian countries where gold is often considered an asset option. He mentioned that cooperation could extend to government levels, such as transactions related to national gold reserves, and further into private market commercial participation. Hui expressed the desire to clearly outline the support and convenience Hong Kong can offer, with the possibility of settling over-the-counter gold contracts in Hong Kong. Hui also noted that as of the end of January, the number of London Metal Exchange (LME) recognized warehouses in Hong Kong had increased to 15, storing up to 23,000 tons of bulk commodities. Efforts will be made to encourage gold merchants and the bulk commodity industry to utilize more of Hong Kong's services.