Budget 2026: Hong Kong reinforces its roles as international gold trading centre

Financial Secretary Paul Chan Mo-po announced that the government will establish Hong Kong as an international gold trading centre, providing relevant services including tax incentives, setting up industry associations and training for eligible gold trading institutions.

Hong Kong plans to lift its gold storage capacity to over 2,000 tonnes within three years, according to Chan Ho-lim, the Under Secretary for Financial Services and the Treasury at the Hong Kong Gold Exchange 2026 opening ceremony.

At the Asian Financial Forum on Jan.26., Hong Kong Financial Services and the Treasury Bureau signed a co‑operation agreement with the Shanghai Gold Exchange, establishing Hong Kong Precious Metals Central Settlement System Company Limited to create a gold settlement system. 

More than 10 banks, both local and overseas, will participate in the system to commence within the year.

Hui Ching-yu, Secretary for Financial Services and the Treasury Bureau, said at the forum that gold is important under current geopolitical uncertainty and inflationary pressures.

Lau Hou, 42, project manager of CNI Securities Group, said the key to increasing gold reserve capacity is whether Hong Kong could be a stronger physical hub in the Asia-pacific zone capable of storage, allocation, delivery and financing. 

“Hong Kong’s advantages lie in connecting the mainland with the international market, Asia-pacific time zone delivery, offshore RMB products and funding pools,” he said.

“Through complementary cooperation with existing major international gold markets, participants can view Hong Kong as a key point in the global chain. This will increase the feasibility and attractivity of RMB-denominated gold productions, making market makers and institutions prefer to offer more products,” Lau added.

Chan Wah, 25, local investor and lawyer, said he holds a wait-and-see attitude regarding the gold policy in today’s budget. “ I hope the government can prioritize training on market regulation and risk management, such as leverage risks, anti-money laundering, since the past training was inconsistent in standards and fragmented,” he added.