HONG KONG: Hong Kong launched a central clearing system for gold on Tuesday and also revived gold futures trading as it seeks to become a regional reserve hub for the precious metal.
The launch will create a solid foundation for Hong Kong to build a comprehensive gold trading ecosystem, Chief Executive John Lee told an investment conference.
"If gold is the world's safe haven, then Hong Kong will be its safe harbour," Lee said, adding that there would be tax incentives for gold trading and settlements.
Hong Kong also kicked off a "Delivery Connect" scheme with the Shanghai Gold Exchange to facilitate cross-border gold settlements, and is considering rolling yuan-denominated gold futures contracts, Lee added.
Hong Kong, which is competing with Singapore to become Asia's gold hub, is seeking to capitalise on rising global interest in gold as distrust grows toward the U.S. dollar amid geopolitical risks.