Hong Kong Urged to Boost Gold Trading
Hong Kong must move quickly to regain a strong position as a gold trading center, according to Chief Executive John Lee Ka-chiu. He emphasized that this could be a potential “game-changer” for the economy as competition in the region intensifies following Singapore’s recent establishment of a 500-tonne depository.
Current Status of Gold Trading Market
Lee acknowledged that Hong Kong’s gold and commodity trading market is currently at a disadvantage with a low base. He highlighted the need for immediate action to build up this sector in order to remain competitive.
Need for Action
Highlighting the discrepancy in vault capacities, Lee pointed out that Hong Kong only has a gold vault of around 150 tonnes at the airport, whereas a recent development in another country boasts a vault with a capacity of 500 tonnes. This underscores the urgency for Hong Kong to step up its efforts in the gold trading industry.
Competition in the Region
With the unveiling of a state-of-the-art vault in Singapore capable of storing up to 10,000 tonnes of silver and 500 tonnes of gold, it is evident that the competition in the region is fierce. Hong Kong cannot afford to fall behind and must take decisive action to enhance its position in the gold trading market.
Strategic Importance
Lee’s announcement regarding the development of the local gold trading market aligns with Beijing’s mandate to strengthen Hong Kong’s status as a global financial hub, alongside maritime and trade. This underscores the strategic importance of revitalizing the gold trading sector in Hong Kong.
