The Hong Kong Treasury Bureau and the Ministry of Finance of Laos sign a memorandum of understanding on gold market cooperation

The Zhitong Finance App learned that on July 20, the Secretary for Financial Services and the Treasury of Hong Kong, Xu Zhengyu, began his visit to Vientiane, Laos, and signed a memorandum of understanding with the Ministry of Finance of Laos to promote cooperation in the gold market and financial services between the two places.

The Memorandum of Understanding was signed by Lao Deputy Prime Minister and Minister of Finance Sandipa and Xu Zhengyu on behalf of the Lao Ministry of Finance and the Hong Kong Treasury to strengthen bilateral cooperation in the development of the gold market and financial services industry. The memorandum of understanding outlines clear areas of cooperation, including providing qualified Laotian gold holders with convenient access to Hong Kong's approved gold refining network to promote physical gold flow; encouraging the wider use of refined gold bars that meet international standards for trading and delivery in Hong Kong; deepening talent training; and promoting fintech cooperation covering tokenization solutions.

At the same ceremony, Xu Zhengyu also witnessed the signing of a memorandum of understanding on the development of the gold market between Lao Gold Bank and MKS PAMP, a well-known precious metals trader and refiner that has set up its third regional headquarters in Hong Kong.

Xu Zhengyu said, “At the beginning of this month, Hong Kong's new central gold clearing and settlement system began trial operation. We also announced a series of precise supporting measures to support the development of the gold market. These measures are closely linked to our country's 15th Five-Year Plan and will help Hong Kong build and improve the commodity trading ecosystem. Our memorandum of understanding on gold market cooperation with the Ministry of Finance of Laos is in line with Hong Kong's development direction. The Memorandum of Understanding reflects our mutual commitment to strengthen communication and knowledge exchange in the field of financial services and focus on the development of the gold market. With this partnership, we will work together to create a seamless, efficient and trustworthy gold corridor that benefits producers, refiners, traders and investors in both economies.”

In particular, he pointed out that the signing of memorandums of understanding on cooperation with Laos at the government level and at the stakeholder level respectively highlights Hong Kong's determination to build a fully functional, internationally competitive gold trading ecosystem that better serves the Asian time zone. Combining Laos's rich natural gold resources with Hong Kong's world-class infrastructure, expertise and international connectivity, the two places will transform these resources into transparent investable assets, thus promoting the sustainable growth of the two countries' economies.

To learn more about the precious metals ecosystem in Laos, Xu Zhengyu visited the Lao Gold Bank and the Lao International Precious Metals Refinery. At the Lao Gold Bank, he inspected its treasury infrastructure and was briefed on its gold-related financial services. Meanwhile, when he visited the International Precious Metals Refinery in Laos, he visited the plant's alchemical facilities using advanced technology and modern refining processes.

He said that by strengthening infrastructure, improving cross-border connectivity, and supporting the entire industrial chain with policies, Hong Kong has excellent advantages and can develop into the world's leading gold trading, clearing and warehousing center.