Mainland Chinese gold manufacturers are increasingly looking to expand overseas through Hong Kong, as record-high gold prices squeeze domestic consumption, exhibitors said at the five-day 42nd Hong Kong International Jewellery Show, which wrapped up today (Mar 8).
The World Gold Council rolled out its Hard Pure Gold Pavilion at the show this year, bringing together 10 leading mainland gold manufacturers to showcase innovative gold technologies and explore global business opportunities via the exhibition platform.
Chen Yujie, General Manager of Trade of Shenzhen Guanhua Jewelry Co. Ltd., has observed a growing trend of many mainland gold brands expanding their footprint in overseas markets.
As a supplier, Chen said that given falling consumption caused by sustained high gold prices, the company is also expanding overseas, with Hong Kong as a strategic hub to understand international market demand, develop tailored products for overseas markets, and seek new market breakthroughs.
The World Gold Council’s Q4 2025 Global Gold Demand Trends report shows that total global gold demand surged to US$550 billion last year, up 45% year-on-year.
The average gold price reached US$4,135 per ounce in Q4 2025, up 55% year-on-year. This drove the full-year average to a record US$3,431 per ounce, a 44% increase.
Chen added that as elevated gold prices deter consumers, turnover volumes have fallen, eroding the cost advantage that high-volume production once provided. With costs increasingly difficult to control, manufacturers have raised selling prices across the board over the past two years.
On Jan. 26, the Financial Services and the Treasury Bureau signed a co-operation agreement with the Shanghai Gold Exchange, with the government’s gold central clearing system scheduled to launch trial operations this year.
In the 2026-27 Budget, Financial Secretary Paul Chan Mo-po also unveiled plans to explore tax incentives for gold trading institutions, assist in establishing a trade association, and set up a training framework.
Abby Wang, a gold retailer from Shenzhen Shuibei, said at the jewellery show that spot retail once demanded little specialised expertise, but as trading, clearing and warehousing converge into an integrated model, the industry now needs professionals who can navigate international regulations, gold pricing and cross-border settlement.
“Such professionals have always been hard to recruit,” Wang said. “The training framework perfectly fills this gap.”
In the long term, Wang said she remains optimistic about Hong Kong’s gold market.
She said that given elevated global geopolitical tensions and uncertain external conditions, sharp fluctuations in gold prices should be viewed as a short-term phenomenon.
“Safe-haven demand is elevated and underlying gold consumption has held firm,” Wang said, adding that as an international financial centre with a strategic location and a mature trading system, Hong Kong is well placed to draw mainland businesses looking to establish a foothold in the city.
《The Young Reporter》
The Young Reporter (TYR) started as a newspaper in 1969. Today, it is published across multiple media platforms and updated constantly to bring the latest news and analyses to its readers.
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