Hong Kong's Financial Services and the Treasury Bureau announced the start of trial operations for the city's new central clearing and settlement system for gold, with the first deposits, trades and settlements already completed. The system is being introduced alongside a package of measures aimed at building a full-chain gold market, including connectivity with the Shanghai Gold Exchange, a new Hong Kong-specific price ticker, expanded storage and refining capacity, broader investment products, possible tax incentives, insurance support, changes to Mandatory Provident Fund investment rules for gold exchange-traded funds, and the creation of an industry-led trade association. The system is operated by the wholly government-owned Hong Kong Precious Metals Central Clearing Company Limited and provides clearing and settlement for bilateral and over-the-counter gold transactions. It is governed by a clearing rulebook, uses a central ledger linked to designated vaults, and settles unallocated gold balances for internationally standard bars of about 400 fine troy ounces. Bank of China Hong Kong has been appointed settlement institution and designated vault, under HKPMCC oversight. At the same time, the initial phase of Delivery Connect with the Shanghai Gold Exchange has gone live, allowing two-way transfers between the Hong Kong over-the-counter market and the Shanghai exchange market, with Industrial and Commercial Bank of China Asia, HSBC and Bank of China Hong Kong completing the first transfers. The bureau also launched the HAU price ticker with Bloomberg as a Hong Kong reference rate and said storage capacity is targeted to exceed 2,000 tonnes within three years, while the number of gold ETFs in Hong Kong has risen to six and Hong Kong Exchanges and Clearing is exploring an RMB gold futures contract. HKPMCC will monitor the trial and identify enhancements before the system is officially commissioned. The system is also expected to connect to the Real Time Gross Settlement system to enable Delivery versus Payment settlement. Other next steps include an Insurance Authority specie insurance hotline within July 2026, continued work on possible tax incentives for eligible gold trading and settlement activity, and a planned fourth quarter amendment bill to relax relevant Mandatory Provident Fund investment rules.

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