FS speaks at grand opening of HK International Airport Precious Metals Depository (English only) (with photos/video)

FS speaks at grand opening of HK International Airport Precious Metals Depository (English only) (with photos/video)
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     Following is the speech by the Financial Secretary, Mr John C Tsang, at the grand opening of the Precious Metals Depository cum Airport Authority Hong Kong and Hong Kong Mercantile Exchange Agreement signing ceremony at Hong Kong SkyCity Marriott Hotel this afternoon (September 2):

Marvin, Barry, distinguished guests, ladies and gentlemen,

     Good afternoon.

     It is a great pleasure for me to join you all this afternoon.

     Today's ceremony marks an important step forward in strengthening Hong Kong's position as a competitive global financial centre.

     I have just visited the Precious Metals Depository, and it is an impressive facility – sort of like our own Fort Knox. Precious metals, primarily gold, will be stored right here under the most secure conditions at one of the world's busiest airports. The gold can be moved quickly and safely to and from virtually anywhere in the world.

     I look forward also to witnessing the signing ceremony between the Depository and the Hong Kong Mercantile Exchange in a few minutes. This Agreement will authorise the Depository to conduct storage and physical settlement activities for the Mercantile Exchange. It also paves the way for the launch of new financial products.

     All this ties in with Government's policy to enhance Hong Kong's position as an international financial and logistics centre. The HKIA Depository will help to tap into opportunities from the growing demand for gold and other commodities in the region.

     As a well-established international financial hub, Hong Kong already has a strong presence of international financial institutions; a regulatory regime that is on a par with international standards; markets that are characterised by a high degree of liquidity, efficiency and transparency; a simple and low tax regime; and the free flow of information, capital and people.

     Ladies and gentlemen, today's opening of the Precious Metals Depository further strengthens our financial infrastructure, providing a convenient and secure storage facility for traders, institutional investors, gold producers and refineries. It also serves as a physical settlement platform for trades made in commodities exchanges in the region, and potentially other parts of the world.

     Congratulations to everyone involved in this project.

     Thank you.

Ends/Wednesday, September 2, 2009
Issued at HKT 15:05

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