What Changed
- HKPMCC Gold Clearing System trial operation launched in July 2026; official launch set for Q1 2027 with DvP settlement.
- Amendment bill submitted to Legislative Council expanding tax regime qualifying investments for funds and single family offices to include precious metals.
- HKMA preparing to moderately increase Exchange Fund gold holdings and transfer physical reserves to HKPMCC-appointed vaults.
The Hong Kong Financial Services and the Treasury Bureau (FSTB) has detailed the Government's ongoing initiatives to establish Hong Kong as an international gold trading hub in a written reply to the Legislative Council on November 11, 2026.
A central component of this strategy is the gold central clearing and settlement system (the Clearing System), operated under the governance of the wholly government-owned Hong Kong Precious Metals Central Clearing Company Limited (HKPMCC). Following trial operations that commenced in July 2026 with 11 banks as provisional direct participants, the Clearing System is scheduled for official launch in the first quarter of 2027. Prior to its launch, the system will connect with the Real Time Gross Settlement system to enable Delivery versus Payment (DvP) settlement. Additionally, Hong Kong is exploring cooperation with the London Bullion Market Association regarding delivery standards.
On governance and market development, the Hong Kong Gold Exchange (HKGX)—formerly the Chinese Gold and Silver Exchange prior to its 2025 corporatisation and restructuring—continues to operate on an industry self-regulation model. The FSTB is assisting a preparatory group to establish a dedicated industry association for gold to consolidate market views and foster sector-wide collaboration.
To encourage precious metals investment, the Government has introduced an amendment bill into the Legislative Council to enhance preferential tax regimes for funds and single family offices. The bill proposes expanding qualifying investments to include precious metals, with the Second Reading debate expected to resume within 2026. If enacted, the amendments will apply from the 2025/26 year of assessment onward. Meanwhile, the Government continues to monitor permissible asset categories under the New Capital Investment Entrant Scheme (New CIES).
Finally, the Hong Kong Monetary Authority (HKMA) is advancing plans for the Exchange Fund to moderately increase its gold holdings, participate in local spot and futures markets, and transfer existing physical gold holdings to HKPMCC-designated vaults.
Who May Be Affected
Gold market participants, traditional financial institutions, single family offices, fund managers, and precious metals traders in Hong Kong and internationally.
Cross-Border Context
Hong Kong is deepening connectivity with the mainland Chinese gold market and exploring cooperation on delivery standards with the London Bullion Market Association.
What to check next
- Resumption of Second Reading debate on the tax regime amendment bill in the Legislative Council within 2026.
- Official launch and RTGS connection of the HKPMCC Gold Clearing System in Q1 2027.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.