HK aims to expand gold trading sector to boost financial influence

Financial Secretary Paul Chan said on Sunday gold trading in Hong Kong has great room for growth amid global market developments, and building up the SAR's market is of great strategic significance.

In announcing his Policy Address last week, Chief Executive John Lee spoke of the vision to turning Hong Kong into an operating center for international commodity trading, including storage, delivery and shipping.

Chan, for his part, said commodities trading is an important part of economic activities as it could play a pivotal role in ensuring the stable supply of raw materials.

"Creating a commodity trading ecosystem can become a new point of support for the development of Hong Kong as an international financial, aviation and trading hub," he wrote on his weekly blog.

The minister said this could drive the development of aviation and trading for the Greater Bay Area, and offer stability to the supply chain in the region.

The priority is to boost trade volume in the short to medium term, Chan said.

The minister said as geopolitical uncertainties rise, demand for gold is expected to stay high for risk-averse investors, and some market players expect trade volume to multiply.

He said once the local infrastructure for gold storage and trading is built up, the SAR can further look into fostering closer links with the mainland gold market.

Chan said developing more risk-management and derivative products can help boost the country's global influence in the gold market in the long run.

This, he said, has great strategic significance in raising Hong Kong's status as an international financial center.

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