Hong Kong steps up bid to become global gold trading hub with Shanghai agreement

Hong Kong will sign an accord with Shanghai next week to establish a cross-border gold trade clearing system, a move the financial chief says will bolster the city’s push to become an international gold trading hub.Financial Secretary Paul Chan Mo-po revealed on Sunday that the city and the Shanghai-gold-exchange" class="entity-link entity-organization" data-entity-id="13461" data-entity-type="organization">Shanghai Gold Exchange would sign a memorandum of understanding at the 19th Asian Financial Forum next week to pave the way for greater connectivity between the two markets.“We are accelerating the push to establish a central clearing system as a vital piece of financial infrastructure, in order to enhance the reliability and efficiency of gold trading and delivery in Hong Kong, lower transaction costs and increase liquidity,” Chan said on his weekly blog.He added that the goal was to launch trial operations within the year and invite the Shanghai-gold-exchange" class="entity-link entity-organization" data-entity-id="13461" data-entity-type="organization">Shanghai Gold Exchange to take part.The initiative comes as investors increasingly pivot away from US dollar-denominated assets amid intensifying geopolitical tensions.Gold prices surged more than 60 per cent in 2025 – the sharpest annual gain since 1979 – while the total value of global gold demand jumped 44 per cent year on year to US$146 billion (HK$3.5 trillion) in the third quarter of last year, according to Chan.