What Changed
- Trial operation of the Hong Kong Gold Central Clearing and Settlement System is underway with 11 provisional direct participant banks, targeting a formal launch in Q1 next year.
- Final-stage connection of the clearing system to Hong Kong's RTGS system will enable Delivery versus Payment (DvP) settlements, alongside proposed tax concessions for storage and refining.
- The LBMA agreed to co-host its Asia Forum in Hong Kong in April next year and is exploring co-operation on gold delivery standards.
Financial institutions, precious metals market participants, bullion traders, and logistics providers operating in or trading with Hong Kong SAR should note new policy and infrastructure developments regarding Hong Kong's gold-trading ecosystem.
Speaking at the Global Precious Metals Conference 2026 in Sorrento, Italy, on October 6, 2026, the Secretary for Financial Services and the Treasury, Mr Christopher Hui, articulated Hong Kong's master plan to establish a comprehensive gold-trading ecosystem supported by government-led infrastructure, market-informed governance, and commercially driven activities.
According to the press release, Hong Kong has progressed to the full implementation stage of its gold market infrastructure. The trial operation of the Hong Kong Gold Central Clearing and Settlement System is currently underway with 11 banks serving as provisional direct participants, while formal launch is scheduled for the first quarter of next year. The system is in its final stages of integration with Hong Kong's Real Time Gross Settlement (RTGS) system to enable Delivery versus Payment (DvP) settlements, aimed at reducing operational friction and settlement risks for market participants.
To foster private market participation in expanding physical gold storage and refining capability, the Hong Kong SAR Government is exploring tax concessions to supplement current tax-free policies on gold imports and exports. In addition, the London Bullion Market Association (LBMA) will co-host its Asia Forum in Hong Kong next April alongside the HKSAR Government and the Hong Kong Precious Metals Central Clearing Company Limited (HKPMCC). The Government and the LBMA are also exploring co-operation regarding physical delivery standards to align local infrastructure with international benchmarks.
Furthermore, the HKPMCC highlighted existing market connectivity efforts, including Delivery Connect, established with the Shanghai Gold Exchange. Engagement with international counterparts includes ongoing meetings with representatives from Swiss precious metals industry associations and international banking institutions.
Who May Be Affected
Banks, financial institutions, bullion traders, precious metals refineries, and storage providers operating in or trading with Hong Kong SAR.
Cross-Border Context
Hong Kong's gold market initiatives connect international trading hubs (London, Switzerland, Singapore) with Mainland Chinese gold markets via mechanisms like Delivery Connect with the Shanghai Gold Exchange.
What to check next
- Official launch announcements and participant criteria for the Hong Kong Gold Central Clearing and Settlement System scheduled for Q1 next year.
- Legislative or regulatory proposals regarding tax concessions for gold storage and refining in Hong Kong SAR.
- Formal details regarding the LBMA Asia Forum scheduled for April next year in Hong Kong.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.