Hong Kong targets gold trading, global ties to boost economy

It aims to boost competitiveness by enhancing access to Mainland China's financial markets.

Hong Kong will enhance its competitive advantages whilst pursuing new growth opportunities, including the establishment of an international gold trading center and strengthening global connections to attract capitaxl, said Chief Executive John Lee.

At the Asian Financial Forum, Lee cited Hong Kong’s robust financial system, highlighting its achievements in global rankings. The city ranked third globally and first in Asia in the latest Global Financial Centres Index, and fifth globally in the World Competitiveness Yearbook.

Policies to bolster Hong Kong’s competitiveness include enhancing mutual access with Mainland China's financial markets and introducing incentives under the New Capital Investment Entrant Scheme. Measures such as relaxing requirements for fund investments and tax exemptions for family offices aim to attract top global companies and talent.

The city’s financial achievements in 2023 include managing $31.13t (USD$4t) in assets, hosting 2,700 single-family offices, and maintaining its leadership as the world’s largest offshore renminbi hub.

Lee also unveiled plans to develop Hong Kong into an international gold trading center. The initiative includes building world-class gold storage facilities and providing comprehensive support services such as insurance, certification, and logistics.

“The stability in Hong Kong, amidst rapid changes in geopolitics around the world, will provide a world of investors a secure environment for gold storage as well as other forms of wealth management,” he said.

Additionally, Hong Kong aims to strengthen its fintech sector by applying artificial intelligence responsibly in financial markets, supported by clear regulatory frameworks.

The chief executive highlighted efforts to deepen ties with regions participating in China’s Belt and Road Initiative, the Middle East, and ASEAN member states. He noted that a new company re-domiciliation regime is in the works to make it easier for international firms to relocate to Hong Kong, ensuring business continuity while boosting the city’s headquarters economy.

Moreover, Hong Kong will also expand its international bond issuance leadership and green finance initiatives, having arranged $30b in green and sustainable bonds in 2023, accounting for 37% of Asia’s market.

“Finance and business will be central to Hong Kong’s next growth engine,” he reiterated.