Asian Gold Hubs Aim to Complement Not Compete With Western Markets

Hong Kong and Singapore have assured that the global gold market’s liquidity is sufficient to support both emerging Asian hubs and established Western centers. Representatives from these two financial centers made the statement during a precious metals conference held in Sorrento, Italy, on October 6, 2026.

The expansion of gold trading ecosystems in Asia has raised concerns in the West about potential competition for liquidity with the London bullion market, the world’s largest over-the-counter trading hub. Hong Kong, in particular, is leveraging its connection to mainland China, the top metals consumer globally. The territory plans to introduce the first central clearing and settlement system for gold in early 2027 and aims to boost its gold storage capacity to over 2,000 metric tons within two years.

Christopher Hui, secretary for financial services and the treasury in Hong Kong, emphasized that the city is positioning itself as a super connector. “We are connecting the LBMA standards and also its internationalism with the Asian liquidity,” he stated. Hong Kong recently launched a “Delivery Connect” program with the Shanghai Gold Exchange to facilitate cross-border gold settlements. Additionally, the city plans to announce details of a renminbi physically delivered gold futures product to be launched on its stock exchange by the end of 2026.

Singapore is also expanding its gold trading infrastructure, starting central bank gold-vaulting services this month and establishing an over-the-counter gold clearing system. The city-state already boasts commercial vaulting capacity exceeding 2,000 metric tons. Lim Cheng Khai, head of the financial markets development department at the Monetary Authority of Singapore, clarified that the goal is to complement, not displace, price discovery in the Asian time zone. He noted that growing demand from sovereigns, institutional investors, and high net worth individuals is driving this expansion.