Business

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, …

The financial landscape in 2025 has been dynamic, with trade tensions and policy shifts drawing intense market attention. In Hong Kong, the performance of local capital markets and the broader economy  have also been in focus. The rapid development of AI has been another major theme. We used three AI models with web-search capabilities, enabling them to access real-time information, to compile a preliminary ranking of the top financial news stories of 2025, both internationally and in Hong Kong.  The following prompt was used for all three AI models:  "Please select the top 5 economic and financial news stories related to [Hong Kong/International] in 2025. You must use credible news websites and official news reports as information sources. For each selected news story, provide a clear ranking, detailed reasons for the ranking, and the source of the news. Ensure the information is accurate and up-to-date,” The list is presented in the table. Duan Yang, a senior lecturer of the Department of Accountancy, Economics and Finance in HKBU,  noted that the results closely reflected key market developments, including the slow recovery of China’s real estate sector, weak consumer spending, the Hong Kong IPO surge, HSBC privatization, and Hong Kong government fiscal policies. In terms of Hong Kong’s financial market, Duan observed that the city’s position as a financial hub had strengthened this year. While (Global Financial Centres Index) rankings had declined in previous years, strong activity in the overall financial market, particularly in the IPO sector, combined with substantial capital inflows, contributed to consolidating Hong Kong’s financial standing. Duan also highlighted a notable trend in the Stock Connect program, with a majority of funds investing in Hong Kong equities now originating from mainland China, compared with a larger share from foreign investors in prior years, indicating a significant shift in market …

Floria Chen, a gold lover from mainland China, is leaning in to scan the gold jewelry at the counter, carefully inspecting it under the lighting as she contemplates her selections in a bustling Chow Tai Fook store in Mong Kok. “Gold prices have performed exceptionally well this year,” Chen said. Believing in the substantial potential for price appreciation, she planned to increase her gold holdings. The year 2025 has been record-breaking for gold , one of the most popular and best-performing assets globally. As of Oct. 31, the international gold spot price had surged more than 50% to $4,002.92 per ounce since the beginning of the year, and reached a new historic high at $4381.52 on Oct. 20.  Alongside the rapid rise,  the year also features a single-day drop of 5.3%, the largest since 2013, though analysts viewed this as a healthy correction following the metal's relentless climb.  Despite this, analysts say the fundamental drivers behind the strong rise in gold prices remain intact. Looking back to this year’s eye-catching alternative, the volatility always echoes the Federal Reserve's monetary policy shift, escalating geopolitical tensions, and ongoing gold purchases by central banks. As of Oct. 31, the US Federal Reserve has cut the basic interest rates twice by 25 basis points on Sep. 18 and Oct. 29 to sustain economic momentum, as a weakened domestic labor market showed.  On Oct. 29, the Federal Reserve announced its plan to end quantitative tightening starting in December. Alongside the evolving policy factors, escalating geopolitical tensions are also playing a significant role.  HSBC noted that on Oct. 8, gold prices first surpassed the $4,000 per ounce mark, driven primarily by various uncertainties, including the ongoing U.S. government shutdown,  resurgence of tariff concerns, and increasing political ambiguity in France. Market concerns over fiscal challenges are also …