Hong Kong and Shanghai Gold Exchanges Sign Agreement to Enhance Market Cooperation

2026-01-26 10:10 Last Updated At：21:13

FSTB and Shanghai Gold Exchange sign co-operation agreement to foster high-quality development of Hong Kong's gold market

The Financial Services and the Treasury Bureau (FSTB) signed today (January 26) a co-operation agreement with the Shanghai Gold Exchange during the Asian Financial Forum, marking a new milestone in deepening co-operation between the gold markets of Hong Kong and Shanghai. The FSTB also revealed new moves in six aspects relating to the development of gold market at the same time.

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Mr Christopher Hui, Photo source: news.gov.hk

FSTB and Shanghai Gold Exchange sign co-operation agreement to foster high-quality development of Hong Kong's gold market Source: HKSAR Government Press Releases

Source: AI-found images

FSTB and Shanghai Gold Exchange sign co-operation agreement to foster high-quality development of Hong Kong's gold market Source: HKSAR Government Press Releases

Source: AI-found images

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Photo source: reference image

Mr Christopher Hui, Photo source: news.gov.hk

FSTB and Shanghai Gold Exchange sign co-operation agreement to foster high-quality development of Hong Kong's gold market Source: HKSAR Government Press Releases

Source: AI-found images

FSTB and Shanghai Gold Exchange sign co-operation agreement to foster high-quality development of Hong Kong's gold market Source: HKSAR Government Press Releases

Source: AI-found images

The agreement was signed by the Secretary for Financial Services and the Treasury (SFST), Mr Christopher Hui, and the Chairman of the Shanghai Gold Exchange, Mr Yu Wenjian, in the presence of the Chief Executive, Mr John Lee; the Deputy Governor of the People's Bank of China, Mr Zou Lan; Member of the Standing Committee of the Communist Party of China (CPC) Shanghai Municipal Committee and Executive Vice Mayor of the Shanghai Municipal People's Government, Mr Wu Wei; and the Executive Deputy Director of the Office of the Financial Commission of the CPC Shanghai Municipal Committee, Mr Zhou Xiaoquan.

Mr Hui also outlined the strategic significance of the agreement and the overall development blueprint for Hong Kong's gold market at the signing ceremony. He said, "Gold has long been regarded as a cornerstone of the global financial system. Its unique physical attributes, inherent scarcity, and proven safe-haven function make it irreplaceable in areas such as national reserves, asset allocation and diversification. In recent years, amid heightened geopolitical uncertainty, inflationary pressures, and ongoing restructuring of the international monetary system, the strategic importance of gold has become even more pronounced. The agreement signed by the FSTB and Shanghai Gold Exchange represents a resolute commitment to translating the spirit of the Central Financial Work Conference, advancing quality financial opening into concrete action while fostering synergistic development of Hong Kong and Shanghai as premier international financial and gold markets."

This significant agreement covers two major forward-looking areas of co-operation:

1. Establishing a high-level, collaborative governance structure for Hong Kong's new gold central clearing system. The Hong Kong Precious Metals Central Clearing Company Limited, which is wholly owned by the Hong Kong Special Administrative Region Government, will have its Board chaired by the SFST while a representative from the Shanghai Gold Exchange will serve as Deputy Chairman. The representative of the Shanghai Gold Exchange will actively participate in the Board, contributing to the preparation of the system, the formulation of rules, the admission of participating institutions, and the provision of expert advice on system design, risk management and other areas. Shanghai and Hong Kong will work together to promote the efficient development of the clearing system and its alignment with international standards.

2. Opening new avenues for physical infrastructure synergy and market interconnectivity. The two sides will explore leveraging the Shanghai Gold Exchange's well-established physical warehousing management regime to provide secure gold management services for participants in both Hong Kong and international markets. The two sides aim to drive greater connectivity between on-exchange and off-exchange gold trading activities. The two sides will forge ahead broader mutual market access by exploring the provision of business convenience and technical alignment to investors from two places through the Hong Kong Precious Metals Central Clearing Company Limited and key participants in the emerging Hong Kong gold trading ecosystem, thereby creating a truly integrated, efficient and open ecosystem.

Mr Hui further elaborated on the Government's vision and supporting measures for Hong Kong's gold market development. They are:

1. Supporting the Airport Authority Hong Kong (AAHK) and financial institutions in establishing gold storage facilities, with a target to exceed 2,000 tonnes of storage capacity within three years, making Hong Kong a trusted global vault. The AAHK has launched a project to expand warehousing to a thousand-tonne scale, catering to local storage, delivery and transit requirements.

2. The FSTB has signed a memorandum of understanding with the Shenzhen Municipal Financial Regulatory Bureau, laying the foundation for processing trade co-operation between Hong Kong and Shenzhen. The next step is to welcome Hong Kong gold traders to engage in substantive co-operation with qualified Shenzhen refining enterprises.

3. Hong Kong's government-owned central clearing system for gold is on track to begin trial operations this year.

4. For the preferential tax regimes offered to funds and single family offices, the Government will propose including precious metals as qualifying investments. The target is to introduce the legislative proposal in the first half of this year.

5. This week, a new gold fund will list in Hong Kong. Its key features include leveraging Hong Kong's well-established gold infrastructure for physical gold trading and storage, with the option of physical gold redemption at bank. Also, the issuer plans to introduce an unlisted share class for potential distribution through licensed digital asset exchanges, bridging traditional and digital finance.

6. The release of an outlook by market participants on the development of Hong Kong's sustainable gold governance framework and standards at the gold-themed session of the Asian Financial Forum, with a view to fostering sustainable sourcing, environmental protection, and long-term responsibility standards.

Mr Hui stressed, "The signing of this agreement with the Shanghai Gold Exchange marks the dawn of a new chapter—one in which Hong Kong and Shanghai join forces to shape the future of global gold markets. Let us embrace this historic opportunity to build stronger bridges, ignite innovation and create enduring value for investors and economies alike."

Asian Financial Forum 2023 Opens, Focusing on Global Cooperation and Financial Innovation Amid Economic Changes.

Asian Financial Forum assembles global financial and business leaders to co-create new horizons amid evolving landscape

The 19th Asian Financial Forum (AFF) opened today (January 26). Featuring the theme "Co-creating New Horizons Amid an Evolving Landscape", the forum gathered heavyweight speakers from around the world to exchange insights on the latest developments in the financial market and to explore ways to foster co-operation among economies to gain mutual benefits in times of change.

The AFF, co-organised by the Hong Kong Special Administrative Region Government and the Hong Kong Trade Development Council (HKTDC), has been a flagship financial event in the region. The two-day forum is expected to attract over 3 600 participants from more than 60 countries or regions. This year's AFF has brought together over 150 distinguished speakers, including government officials, representatives from central banks and regulatory bodies, financial and business leaders, scholars and economists, to discuss key financial and economic trends, as well as emerging opportunities in various facets of the financial sector, including asset and wealth management, fintech, trade finance, gold and precious metals trading, green finance, insurance and risk management. This year's forum also includes significant upgrades to its content, introducing the new Global Business Summit. The summit explores how finance empowers businesses, focusing on Mainland economic opportunities and examining how Hong Kong leverages the synergy between finance and industries to support Mainland enterprises in "going global" while facilitating the "bringing in" of international businesses.

The Chief Executive, Mr John Lee, when addressing the opening session of the AFF this morning, highlighted Hong Kong's prowess as an international financial hub. He said, "Hong Kong's financial regulatory system is robust, and our financial market stands out for its deep liquidity, innovative products and world-class investor protection. We also boast a highly educated workforce, a welcoming environment for global talent and transparent financial regulations aligned with international standards."

He stressed that these strengths are widely recognised, citing the fact that Hong Kong ranked third, globally, and first in Asia, in the most recent Global Financial Centres Index, while placing third in the 2025 World Competitiveness Yearbook, up two places over the previous year. He added that the city will focus on three fronts to further boost its status as an international financial centre. First, Hong Kong will further reinforce its existing strengths, including those in the equity market, the bond market, and the asset management and wealth management sector. Second, Hong Kong will expedite the development of new growth areas, including building an international gold trading market and commodities trading ecosystem in Hong Kong. Third, international exchanges and co-operation will remain a priority for Hong Kong, including assisting companies interested in re-domiciling to Hong Kong.

In the opening session, the Deputy Governor of the People's Bank of China (PBOC), Mr Zou Lan said that China's financial market has developed rapidly in recent years, with its international influence and attractiveness being continuously enhanced. As Renminbi is more widely used in cross-boundary transactions, Hong Kong has emerged as the world's largest and most influential offshore Renminbi business hub. He said that as a next step to steadfastly support and further steadily advance the development of Hong Kong's offshore Renminbi market, the PBOC will focus on four key directions: first, to increase the scale of Renminbi funding arrangements to provide more ample liquidity support for Hong Kong's offshore market; second, to continue to advance financial market connectivity, enriching liquidity management and risk hedging tools for overseas investors; third, to expand the supply of offshore Renminbi sovereign bonds to enhance market liquidity; and fourth, to support the development of Hong Kong's gold market to strengthen the offshore Renminbi market function of Hong Kong.

The Financial Secretary, Mr Paul Chan, delivered welcome remarks at the keynote luncheon. He said, "In a world where economies are reconfiguring value chains and seeking more resilient, diversified partnerships, Hong Kong stands out as a reliable, trusted, resourceful and well-positioned partner, bridging the Mainland and the world."

He emphasised that Hong Kong’s significance will only grow, pointing out that Hong Kong serves as a gateway for global investors to access China's innovation-driven opportunities. In the realms of finance, he highlighted two key specific areas: as the premier two-way international fundraising platform, welcoming both Mainland and international companies to list in Hong Kong to support their growth; and as the world’s leading offshore Renminbi (RMB) hub, with a wide range of RMB-denominated investment and risk management products for global investors.

He added that at a time of global fragmentation, Hong Kong will continue to remain open for business, and welcome partners from around the world in shaping the future of Asia – and the world at large – together.

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, signed today a co-operation agreement with the Chairman of the Shanghai Gold Exchange, Mr Yu Wenjian, in the presence of Mr Lee; Mr Zou; Member of the Standing Committee of the Communist Party of China (CPC) Shanghai Municipal Committee and Executive Vice Mayor of the Shanghai Municipal People's Government, Mr Wu Wei; and the Executive Deputy Director of the Office of the Financial Commission of the CPC Shanghai Municipal Committee, Mr Zhou Xiaoquan. The co-operation agreement marks a new milestone for deepening the co-operation between gold markets in the two places, such as establishing a high-level, collaborative governance structure for Hong Kong's gold central clearing system, opening new avenues for physical infrastructure synergy and market interconnectivity. Separately, a panel discussion on gold exchange was held in the afternoon, analysing the market developments of the global gold industry and Hong Kong's role.

Mr Hui also chaired a plenary session today themed "Fostering Co-operation for Shared Success". Mr Hui and the panellists shared their thoughts on how to strengthen communication and dialogue among economies and pursue shared development amid the evolving global political and economic landscape. Speakers joining this session included the Deputy Prime Minister and Minister for Finance of Slovenia, Mr Klemen Boštjani; the Minister of Treasury and Finance of Türkiye, Mr Mehmet imek; the President of the Asian Infrastructure Investment Bank, Ms Zou Jiayi; and the Vice-President (East and Southeast Asia, and the Pacific) of Asian Development Bank, Mr Scott Morris.

Former President of the European Commission, former Prime Minister of Portugal, and Chairman of Advisory Board at Goldman Sachs International, Dr José Manuel Barroso, also delivered a keynote speech at the luncheon, sharing his views on the changes in global political and economic landscapes and their impact on international markets.

The 19th AFF will continue tomorrow (January 27). The inaugurl Global Business Summit, co-organised by the Financial Services and the Treasury Bureau, the HKTDC, and the Office for Attracting Strategic Enterprises, will be held. Focusing on how finance empowers businesses, the summit will cover the potential of high-growth industries such as artificial intelligence and technology, robotics, high-growth consumer products, and biopharmaceuticals and healthcare. It will also explore how Hong Kong can support Mainland enterprises going global, and the prospects of foreign enterprises entering the Mainland market. The summit will feature heavyweight speakers. Among them, Mr Chan; the Executive Vice Mayor of the Shanghai Municipal People's Government, Mr Wu Wei; and Vice Governor of the People's Government of Hunan Province Mr Wang Junshou will deliver speeches.

Business leader, investor and philanthropist Mr Paul Polman will be the speaker for the keynote luncheon tomorrow. The forum will also feature thematic workshops on topics such as artificial intelligence, sustainable banking, and family office.

The two-day AFF encompasses diverse events, including Global Spectrum series, Dialogues for Tomorrow series, and a breakfast panel. Investment opportunities are highlighted through the AFF Deal-making and a range of exhibition zones. Moreover, to showcase Hong Kong's various cultures and facilities, the forum offers experiential activities, sightseeing tours and dining discounts for international participants, encouraging them to make the most of their stay and experience the city's vitality.

Hong Kong and Shanghai Gold Exchanges Sign Agreement to Enhance Market Cooperation