Hui Ching-yu: Work on linking Hong Kong's gold settlement to the instant payment settlement system has entered its final stage.

On October 6 local time, the Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, attended the Global Precious Metals Conference 2026 hosted by the London Bullion Market Association in Sorrento, Italy. Hui said that Hong Kong, leveraging its strategic geographical location, its status as an international financial center, and its unique advantage of practicing the common law system, is fully committed to building a gold trading ecosystem that connects with the existing gold market and injects usable liquidity into the international market. Hui pointed out that Hong Kong has moved beyond the planning stage and fully entered the implementation stage. The trial operation of Hong Kong's Central Gold Clearing and Settlement System has received an ideal response. In addition to the 11 banks serving as temporary direct participants in the settlement system, other banks have also expressed interest in joining the settlement system, which is scheduled to officially commence operation in the first quarter of next year. At the same time, Hong Kong's efforts to link the settlement system with Hong Kong's Real Time Gross Settlement system to achieve "delivery versus payment" settlement have entered the final stage, with the goal of reducing settlement risk, enhancing operational efficiency, and providing a reliable foundation for participants to develop their business. In addition, the Hong Kong government is actively promoting private market participation in expanding gold storage capacity and refining capacity through various policy measures, including studying tax incentives, so as to further increase the attractiveness to market participants given that activities such as gold import and export already enjoy tax exemption. Hui also announced that the London Bullion Market Association will co-host an Asia Forum in Hong Kong in April next year with the Hong Kong SAR government and the Hong Kong Precious Metals Central Clearing System Limited. He was excited about the association's decision, considering it a full affirmation of Hong Kong's rapid advancement in gold market development over the past two years. The forum will be held at a time when Hong Kong's Central Gold Clearing and Settlement System is officially launched, and the Hong Kong government will take the opportunity to showcase to international and Asian participants Hong Kong's strength in aligning with international standards, as well as how the industry can make good use of Hong Kong as a trusted platform to connect the international and mainland gold markets. Regarding alignment with international standards, Hui specifically mentioned that the Hong Kong government is discussing with the London Bullion Market Association the implementation of cooperation on the Good Delivery standard. He said that if the cooperation is implemented, it will help integrate internationally recognized standards into Hong Kong's gold market infrastructure and lay a credible foundation for the industry to participate in market activities.