Paul Chan: Gold is an important part of the financial ecosystem; the Hong Kong Monetary Authority is studying increasing its gold holdings.

Hong Kong Financial Secretary Paul Chan Mo-po said the Hong Kong Monetary Authority's Exchange Fund has two responsibilities: one is to maintain Hong Kong's financial stability and defend the Hong Kong dollar, and the other is to promote Hong Kong's development into an international financial center. Gold is a very important part of the financial ecosystem, so after considering all factors, the HKMA is studying increasing its gold holdings. As for the specific amount of holdings, Paul Chan Mo-po said too many details cannot be disclosed at present. Regarding the Policy Address's statement that the HKMA is studying a moderate increase in the Exchange Fund's gold holdings and participation in Hong Kong's spot and futures markets, and will gradually transfer existing gold stockpiles to warehouses designated by the Chinese Gold and Silver Exchange Society for settlement. Hong Kong's first five-year plan proposed that the government will take the lead in studying and promoting the use of renminbi for government expenditure in more suitable scenarios. Paul Chan Mo-po said the renminbi, like other currencies, will fluctuate, and when the government issues renminbi-denominated bonds, it will also consider hedging, because sometimes after taking into account costs, interest, and hedging, it is better than issuing bonds in US dollars.