(Jan 18): Hong Kong will sign a memorandum of understanding with the Shanghai Gold Exchange at the upcoming Asian Financial Forum, according to the city’s Financial Secretary Paul Chan.
The government will also announce the latest plan to strengthen the development of the central clearing system for gold and to lay the groundwork for future connectivity with mainland Chinese markets, he wrote in a blog on Sunday. The city aims to commence trial operation of the clearing system within this year and will invite the Shanghai Gold Exchange to participate in it, Chan added.
Hong Kong is keen to position itself as a regional hub for precious metals trading, as well as to further deepen its economic and financial ties with mainland China. International clearing is a key step toward establishing a liquid and active gold market, allowing investors to trade the bullion without having to physically move the commodity.
Bloomberg News reported in October that the Shanghai Gold Exchange was in advanced discussions with Hong Kong officials over its participation in an international clearing system.
As of November, the average daily turnover of 99 tael gold on the Hong Kong Gold Exchange rose more than two fold from a year ago, according to Chan’s blog.
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