FSTB and Shanghai Gold Exchange sign co-operation agreement to foster high-quality development of Hong Kong's gold market (with photos)
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The agreement was signed by the Secretary for Financial Services and the Treasury (SFST), Mr Christopher Hui, and the Chairman of the Shanghai Gold Exchange, Mr Yu Wenjian, in the presence of the Chief Executive, Mr John Lee; the Deputy Governor of the People's Bank of China, Mr Zou Lan; Member of the Standing Committee of the Communist Party of China (CPC) Shanghai Municipal Committee and Executive Vice Mayor of the Shanghai Municipal People's Government, Mr Wu Wei; and the Executive Deputy Director of the Office of the Financial Commission of the CPC Shanghai Municipal Committee, Mr Zhou Xiaoquan.
Mr Hui also outlined the strategic significance of the agreement and the overall development blueprint for Hong Kong's gold market at the signing ceremony. He said, "Gold has long been regarded as a cornerstone of the global financial system. Its unique physical attributes, inherent scarcity, and proven safe-haven function make it irreplaceable in areas such as national reserves, asset allocation and diversification. In recent years, amid heightened geopolitical uncertainty, inflationary pressures, and ongoing restructuring of the international monetary system, the strategic importance of gold has become even more pronounced. The agreement signed by the FSTB and Shanghai Gold Exchange represents a resolute commitment to translating the spirit of the Central Financial Work Conference, advancing quality financial opening into concrete action while fostering synergistic development of Hong Kong and Shanghai as premier international financial and gold markets."
This significant agreement covers two major forward-looking areas of co-operation:
1. Establishing a high-level, collaborative governance structure for Hong Kong's new gold central clearing system. The Hong Kong Precious Metals Central Clearing Company Limited, which is wholly owned by the Hong Kong Special Administrative Region Government, will have its Board chaired by the SFST while a representative from the Shanghai Gold Exchange will serve as Deputy Chairman. The representative of the Shanghai Gold Exchange will actively participate in the Board, contributing to the preparation of the system, the formulation of rules, the admission of participating institutions, and the provision of expert advice on system design, risk management and other areas. Shanghai and Hong Kong will work together to promote the efficient development of the clearing system and its alignment with international standards.
2. Opening new avenues for physical infrastructure synergy and market interconnectivity. The two sides will explore leveraging the Shanghai Gold Exchange's well-established physical warehousing management regime to provide secure gold management services for participants in both Hong Kong and international markets. The two sides aim to drive greater connectivity between on-exchange and off-exchange gold trading activities. The two sides will forge ahead broader mutual market access by exploring the provision of business convenience and technical alignment to investors from two places through the Hong Kong Precious Metals Central Clearing Company Limited and key participants in the emerging Hong Kong gold trading ecosystem, thereby creating a truly integrated, efficient and open ecosystem.
Mr Hui further elaborated on the Government's vision and supporting measures for Hong Kong's gold market development. They are:
1. Supporting the Airport Authority Hong Kong (AAHK) and financial institutions in establishing gold storage facilities, with a target to exceed 2,000 tonnes of storage capacity within three years, making Hong Kong a trusted global vault. The AAHK has launched a project to expand warehousing to a thousand-tonne scale, catering to local storage, delivery and transit requirements.
2. The FSTB has signed a memorandum of understanding with the Shenzhen Municipal Financial Regulatory Bureau, laying the foundation for processing trade co-operation between Hong Kong and Shenzhen. The next step is to welcome Hong Kong gold traders to engage in substantive co-operation with qualified Shenzhen refining enterprises.
3. Hong Kong's government-owned central clearing system for gold is on track to begin trial operations this year.
4. For the preferential tax regimes offered to funds and single family offices, the Government will propose including precious metals as qualifying investments. The target is to introduce the legislative proposal in the first half of this year.
5. This week, a new gold fund will list in Hong Kong. Its key features include leveraging Hong Kong's well-established gold infrastructure for physical gold trading and storage, with the option of physical gold redemption at bank. Also, the issuer plans to introduce an unlisted share class for potential distribution through licensed digital asset exchanges, bridging traditional and digital finance.
6. The release of an outlook by market participants on the development of Hong Kong's sustainable gold governance framework and standards at the gold-themed session of the Asian Financial Forum, with a view to fostering sustainable sourcing, environmental protection, and long-term responsibility standards.
Mr Hui stressed, "The signing of this agreement with the Shanghai Gold Exchange marks the dawn of a new chapter—one in which Hong Kong and Shanghai join forces to shape the future of global gold markets. Let us embrace this historic opportunity to build stronger bridges, ignite innovation and create enduring value for investors and economies alike."
Ends/Monday, January 26, 2026
Issued at HKT 10:10
Issued at HKT 10:10
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