HKSFPA Welcomes Government-Led Reform of Gold Market, Establishing National-Level Infrastructure and Aligning with International Standards
Release Date: 2026-01-26
Date: 26 January 2026
Hong Kong Securities and Futures Professionals Association (“HKSFPA” or “The Association”) welcomes the signing of a cooperation agreement between the Financial Services and the Treasury Bureau and the Shanghai Gold Exchange to jointly promote the development of Hong Kong’s Central Gold Clearing System. This reform, personally steered by the government, marks Hong Kong’s transformation from a gold market traditionally reliant on industry self-regulation to an internationally recognized market with high credibility and a modern governance structure.
I. Establishing an Official Clearing System to Address Structural Market Gaps
The Association supports the government’s initiative to build an official clearing platform with Central Counterparty (CCP) capabilities. Historically, Hong Kong’s gold market model has fallen short of the risk management and compliance requirements of modern international institutional investors, limiting market depth. The establishment of a government-led regulatory infrastructure not only effectively fills the long-standing gap of a standardized clearing system but is also a critical step in breaking through the limitations of the old framework. This will enable Hong Kong to restore international capital confidence through formalized and institutionalized mechanisms.
II. Optimizing Tax Policies and Storage to Expand Asset Management Boundaries
Regarding the government’s decision to include gold in the tax exemption scope for funds and family offices and significantly expand airport storage capacity, the Association believes these measures will inject new momentum into the securities and asset management industries. By eliminating tax and logistical barriers that previously hindered institutional participation, the industry can incorporate precious metals into standard asset allocations within a compliant framework. This will diversify wealth management products and drive the industry’s evolution from pure trading to comprehensive asset management.
III. Deepening Market Connectivity and Strengthening Offshore Renminbi Pricing Power
Through integration with the Shanghai Gold Exchange’s mechanisms, Hong Kong will further align with the national financial development strategy. The Association is confident that, with robust official infrastructure, Hong Kong can effectively leverage the pricing and settlement functions of offshore Renminbi in physical gold trading. This will transform Hong Kong’s role from a transshipment hub to an influential international gold pricing center.
Conclusion
The Association looks forward to the full implementation of the newly announced initiatives for gold market development. From expanding physical storage and optimizing tax arrangements to establishing internationally aligned official clearing infrastructure, these concrete measures will inject strong momentum into the market. At the same time, the Association hopes the government will adhere to its overall vision and supporting measures for Hong Kong’s gold market development. Through comprehensive top-level design and policy support, Hong Kong can break through traditional constraints and upgrade into a modern international gold hub integrating trading, clearing, pricing, and asset allocation.
Hong Kong Securities and Futures Professionals Association
Chairman
Mofiz Chan
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