Edward Yau: Hong Kong is intensifying efforts to establish a gold central clearing system to reduce trading costs.

On the 18th, Chan Mo-po wrote that in the face of the changing international situation, Hong Kong's role and function as a super-connector and super value-added person under the "one country, two systems" framework are becoming more prominent. Hong Kong must continue to consolidate and enhance the efficiency and competitiveness of its traditional advantageous industries, and inject new development connotation. Chan Mo-po revealed that with the joint efforts of the Hong Kong SAR Government and the industry, the Hong Kong gold spot trading market has become significantly more active. As of November last year, the average daily turnover of 99 gold on the Hong Kong Gold Exchange had more than doubled year-on-year, reaching 2.9 billion Hong Kong dollars. However, currently, over-the-counter gold spot trading in Hong Kong requires both parties to settle transactions on their own, which is inconvenient. "Therefore, we are stepping up efforts to establish a gold central clearing system as an important financial infrastructure to enhance the reliability and efficiency of Hong Kong's gold trading and physical delivery, reduce transaction costs, increase liquidity, and aim to start trial operation within this year and invite the Shanghai Gold Exchange to participate," Chan Mo-po said. At the 19th Asian Financial Forum to be held next week, Hong Kong will sign a memorandum of cooperation with the Shanghai Gold Exchange and announce the latest plan to strengthen the construction of the gold central clearing system, in preparation for future connectivity with the mainland market.