Hong Kong Accelerates Gold Market Integration Amid Global Demand Surge

Hong Kong is advancing plans for a central gold clearing system through a memorandum of understanding with the Shanghai Gold Exchange, targeting faster settlement and reduced transaction costs. The MOVE comes as gold prices surged 60% in 2025—the sharpest annual gain since 1979—with global demand by value jumping 44% YoY to $146 billion.

Financial Secretary Paul Chan highlighted the city’s role as a connector under China’s 15th Five-Year Plan, emphasizing gold trading as a strategic priority. Daily turnover for 99 tael gold contracts on Hong Kong’s exchange has already tripled year-over-year to HK$2.9 billion, exposing infrastructure gaps in over-the-counter settlements.

The initiative aligns with institutional shifts away from dollar assets, as Asia seeks reliable platforms for gold storage, pricing, and clearing. Chan will promote the plan at Davos alongside discussions on Hong Kong’s positioning in evolving global trade frameworks.