Hong Kong’s gold clearing and settlement firm joins Shanghai exchange
Hong Kong has launched a trial operation for a gold clearing and settlement system to strengthen its position as a trading hub.Summary
Hong Kong inaugurated the trial operation of a gold clearing and settlement system on Tuesday, a step towards building the city into a trading hub and price-setter for the precious metal. The decision was announced at the Hong Kong FIC & Bond Connect Summit by Chief Executive John Lee Ka-chiu, who hailed it as a "milestone." The government-owned Hong Kong Precious Metals Central Clearing [Company] will offer a comprehensive suite of services ranging from gold deposits and withdrawals to transaction settlements in the over-the-counter market in Hong Kong. The first transaction involved multiple banks, refiners, mining and jewellery companies. Amid geopolitical crises and macroeconomic volatility, Lee said gold was "becoming one of the key pillars for liquidity and risk management." The launch of Hong Kong's central clearing system for gold will create a historic foundation, allowing us to take the next major step, and that's building a comprehensive gold trading ecosystem, he said.
(Source：South China Morning Post)