Financial Secretary Paul Chan believes that the gold trading market in Hong Kong has significant potential for growth in light of global market trends. He emphasized the importance of developing Hong Kong’s market as a strategic move. Chief Executive John Lee also expressed a vision of transforming Hong Kong into a hub for international commodity trading, encompassing storage, delivery, and shipping services.
According to Chan, commodities trading plays a crucial role in economic activities by ensuring a stable supply of raw materials. He highlighted the importance of creating a commodity trading ecosystem to support Hong Kong’s development as a global financial, aviation, and trading center. This move could also benefit the Greater Bay Area by driving aviation and trading growth while promoting supply chain stability in the region.
Chan outlined the short to medium-term goal of increasing trade volume within the gold market. He noted that amidst rising geopolitical uncertainties, the demand for gold remains high among risk-averse investors. Some market experts anticipate a significant increase in trade volume in the future.
The minister stressed the importance of establishing local infrastructure for gold storage and trading. Once this foundation is laid, Hong Kong can explore opportunities to strengthen ties with the mainland gold market. Chan suggested that developing risk-management and derivative products could enhance the country’s global influence in the gold market over the long term. This strategic move would elevate Hong Kong’s status as an international financial center.
In conclusion, Chan’s positive outlook on Hong Kong’s gold market reflects a broader vision of transforming the region into a key player in international commodity trading. By capitalizing on market trends and building robust infrastructure, Hong Kong aims to solidify its position as a global financial and trading hub while contributing to the growth of the Greater Bay Area.
