Acting Secretary for Financial Services and the Treasury, Joseph Chan, said today (May 27) in a written reply to Legislative Council member Andrew Yao that Hong Kong currently imposes no customs duties or import/export controls on gold products brought in or taken out by travellers. The government will, in response to market demand, explore with Mainland authorities the feasibility of providing more convenient arrangements for travellers when necessary, in order to promote the development of Hong Kong's gold retail market.
Chan said the operational preparations for the Hong Kong Gold Central Clearing System, which the government is establishing, have entered the final stage. A trial operation is planned to be launched within this year, allowing the government to better understand and analyse the operational practices of the industry, ensuring the system is both attractive and operationally robust. This will encourage more Mainland and international investors and users to choose Hong Kong as a clearing and settlement hub.
To attract more physical gold to be stored, cleared, and settled in Hong Kong, and to build a comprehensive gold trading ecosystem, the government has set a clear target for storage capacity expansion. By promoting the Airport Authority Hong Kong and financial institutions to expand gold storage capacity in Hong Kong, the government aims to achieve a storage volume of over 2,000 metric tonnes within three years, establishing the city as a regional gold reserve hub. Several enterprises qualified to refine international standard gold have already expressed interest in entering the Hong Kong market.
Chan further noted that the Financial Services and the Treasury Bureau have signed a Memorandum of Cooperation with the Shenzhen Municipal Financial Regulatory Bureau and a Cooperation Agreement with the Shanghai Gold Exchange, preparing for future connectivity with the Mainland and building an integrated gold ecosystem. This will enhance the international influence of the renminbi in gold pricing and trading. The Memorandum signed with Shenzhen includes support for Hong Kong gold trading firms to engage in processing and trade cooperation with qualified refining enterprises in Shenzhen. The aim is to utilise Shenzhen's internationally accredited refining capacity — refining gold and exporting the physical metal to Hong Kong for trading and settlement — thereby increasing the volume of Hong Kong's gold market. The bureau is now finalising implementation details with relevant Mainland authorities, with specific measures to be announced in due course.
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