Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the Memorandum of Understanding (MOU) signing ceremony with the Ministry of Finance of Laos today (July 20):

Your Excellency Deputy Prime Minister Phomvihane (Deputy Prime Minister and Minister of Finance of Laos, Mr Santiphab Phomvihane), distinguished guests, ladies and gentlemen,

     It is my great pleasure to welcome you all to this very significant signing ceremony today. The Memorandum of Understanding we are about to sign marks a milestone in the deepening friendship and economic partnership between Hong Kong and Laos. Under the framework of the Belt and Road Initiative, our two sides are building upon warm and growing ties to create new opportunities for mutual interests and prosperity.

     Hong Kong has long served as an international financial centre with world-class infrastructure, deep capital markets, and a robust regulatory environment. We are now accelerating our development as a leading gold trading, clearing, and reserve hub for Asia and beyond. Earlier this month, Hong Kong's new central gold clearing and settlement system commenced trial operation, and we have announced a comprehensive package of targeted initiatives to support our gold market development. These include a co-operation initiative with the Shanghai Gold Exchange, the launch of a new HAU price ticker in which AU is the reference to gold in the periodic table while H refers to Hong Kong, expansion of storage capacity to beyond 2 000 tonnes in three years' time, diversification of gold investment products such as ETFs (exchange-traded funds) and futures, exploration of tax incentives, co-ordinated insurance arrangements, and the establishment of an industry-led trade association. These steps closely align with our country's 15th Five-Year Plan, and will support Hong Kong in building and enhancing our commodity trading ecosystem. These initiatives will enhance physical delivery, risk management, connectivity with the Mainland, and our overall market depth - creating new investment opportunities and injecting fresh momentum into our financial sector.

     Our MOU with Laos to be signed today on fostering gold market co-operation perfectly complements these developments. It represents our shared commitment to strengthen communication and knowledge exchange in financial services, with a particular focus on gold market development. Through this partnership, we will work together to realise a seamless, efficient, and trusted gold corridor that benefits producers, refiners, traders, and investors in both our economies.

     The MOU outlines clear areas of collaboration. We will promote physical gold flows by facilitating access for qualified Lao gold owners to Hong Kong's accredited refining network and encouraging the use of refined gold bars meeting international standards in our market. We will strengthen financial market linkages - leveraging Hong Kong's capital markets and infrastructures - to provide Lao market participants with liquidity, efficient price discovery, and international capital. We will also pursue joint international promotion across Belt and Road partner countries, foster talent development and fintech collaboration including tokenisation solutions, enhance regulatory collaboration on AML (anti-money laundering) and best practices, and promote a conducive business environment. Hong Kong's competitive tax regime - with no sales tax nor import duty on investment-grade gold, and no capital gains tax - positions us as an efficient hub, and we look forward to exploring more targeted initiatives with Laos.

     Co-operative activities will be flexible and practical, including exchange of best practices, joint projects, workshops and exchange visits. Each side may involve relevant regulators, institutions, and industry representatives as appropriate.

     Ladies and gentlemen, today's signing is the beginning of a dynamic and evolving partnership. By combining Laos' natural gold endowment with Hong Kong's world-class infrastructure, expertise, and international connectivity, we can transform resources into investable, transparent assets that drive sustainable economic growth for both markets.

     I extend my sincere appreciation to our Laos' counterparts for their vision and collaborative spirit. Thank you.

Ends/Monday, July 20, 2026
Issued at HKT 15:48

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