In his 2026 Policy Address, Hong Kong’s Chief Executive John Lee has affirmed the city’s drive to cement its role as an international financial centre. The city plans to achieve this by developing its global offshore Renminbi (RMB) business and capital market, international asset and wealth management, fixed income, and commodity trading.
Most significantly, Lee noted that Hong Kong is expediting the development of an international gold trading market, capitalising on the current strength of the gold industry.
Hong Kong has announced that it will launch a central clearing and settlement system for gold in Q1 2027, in addition to new RMB-denominated and physically settled gold futures contracts, as the city aims to increase the global influence of RMB in precious metals pricing.
As part of this plan, the Hong Kong Monetary Authority (HKMA) has announced it is exploring options to increase the exchange’s gold holdings and is considering gradually transferring its physical gold holdings to designated vaults.
Physical gold holdings
The Hong Kong Exchanges and Clearing (HKEX) acquired the London Metal Exchange (LME) in December 2012 for £1.39 billion ($2.61 billion). Then, in January 2025, the LME established Hong Kong as an approved delivery and warehousing location, with the first batch of warehouses developed just months later.
Since mid-2025, Hong Kong’s storage for metals has grown to over 60,000m2, with an inventory of more than 20,000 tonnes of metal. For gold, the Hong Kong Government is targeting a storage capacity of more than 2,000 tonnes within three years.
The Hong Kong Government is now implementing tax concessions for physical commodity trading in order to attract more traders to the city and is working to establish more LME-approved warehouses in the Northern Metropolis area.
In July 2026, the Shanghai Gold Exchange also set up in Hong Kong, launching a new HAU price ticker and expanding storage, refining, gold investment products, and more as part of the drive to establish Hong Kong’s gold industry.
The planned launch of Hong Kong’s central clearing and settlement system is a defining step in positioning the city as a global hub for precious metals. Backed by the Chief Executive’s 2026 Policy Address, the initiative is designed to strengthen Hong Kong’s role in offshore RMB business and reinforce its influence in international commodity trading.
The system will provide infrastructure for gold transactions, enhance transparency, and reduce settlement risk, all while supporting the city’s broader ambition to expand RMB-denominated products and deepen integration with global markets.
Write to Amy Rotman at Mining.com.au
Main image: Unsplash
