Xu Zhengyu: Hong Kong's gold settlement link to the instant payment settlement system has entered the final stage

The Zhitong Finance App learned that on October 6, local time, Hong Kong's Secretary for Financial Services and the Treasury, Xu Zhengyu, attended the Global Precious Metals Conference 2026 hosted by the London Bullion Market Association in Sorrento, Italy. Xu Zhengyu said that with its strategic geographical location, position as an international financial center, and the unique advantage of adhering to the common law system, Hong Kong is making every effort to build a gold trading ecosystem connecting the existing gold market and injecting usable liquidity into the international market.

Hui Ching-yu pointed out that Hong Kong has broken out of the planning stage and has fully entered the implementation stage. The trial operation response of the Hong Kong Gold Central Clearing and Settlement System was ideal. In addition to the 11 banks that are temporary direct participants in the settlement system, other banks have also expressed interest in joining the settlement system, which will be officially put into operation in the first quarter of next year. At the same time, Hong Kong is committed to linking the settlement system to Hong Kong's real-time payment and settlement system to achieve “bank-to-bank” settlement. The goal is to reduce settlement risks, improve operational efficiency, and provide a reliable foundation for participants to develop their business. Furthermore, the Hong Kong Government is actively promoting private market participation in expanding gold storage capacity and improving refining production capacity through various policy measures, including studying tax incentives to further increase the appeal to market participants when gold import and export activities already enjoy tax exemptions.

Xu Zhengyu also announced that the London Bullion Market Association will co-host the Asia Forum with the Hong Kong Special Administrative Region Government and Hong Kong Precious Metals Central Clearing Systems Co., Ltd. in Hong Kong in April next year. He is excited by the Association's decision, which he believes is a full affirmation of Hong Kong's rapid progress in the development of the gold market over the past two years. The forum coincides with the official launch of the Hong Kong Gold Central Clearing and Settlement System. The Hong Kong Government will take the opportunity to show international and Asian participants the ability of Hong Kong to meet international standards and how the industry can make good use of Hong Kong as a trusted platform to connect the international and mainland gold markets.

In terms of integration with international standards, Xu Zhengyu specifically mentioned that the Hong Kong Government is discussing cooperation with the London Bullion Market Association to implement qualified delivery standards. He said that if 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.