Government to launch central gold clearing system in Q1 2027: CE Lee

A new hotline will support traders entering the city’s gold market. 

Hong Kong will launch its central clearing and settlement system for gold in the first quarter of 2027, Chief Executive John Lee said in his 2026 Policy Address.

The HKEX will also announce details this year of new renminbi-denominated, physically settled gold futures contracts.

Meanwhile, the Securities and Futures Commission will enhance the regulatory regime for over-the-counter derivatives to support risk and capital management in gold and commodity trading.

The measures come as Hong Kong expands its gold-market infrastructure under its First Five-Year Plan for Economic and Social Development for 2026 to 2030.

Lee said the government will establish a dedicated hotline for Mainland and overseas traders seeking to participate in Hong Kong’s gold market.

The government will also encourage the industry to establish a gold association and hold a flagship industry event in 2027.

The Insurance Authority will strengthen coordination with the industry on insurance arrangements for precious metals and has launched a dedicated specie insurance hotline connecting policyholders with insurers.

Meanwhile, the Hong Kong Monetary Authority (HKMA) is exploring whether to increase the Exchange Fund’s gold holdings and participate in the city’s spot and futures markets.

The HKMA is also considering gradually transferring its physical gold holdings to designated vaults appointed by the Hong Kong Precious Metals Central Clearing Company.