Hong Kong Puts Gold Trading at Center of Five-Year Plan for RMB Internationalization

Hong Kong has unveiled its first five-year economic and social development plan, positioning gold trading as a key engine for RMB internationalization. Chief Executive John Lee delivered his policy address on Wednesday, announcing that the Hong Kong Monetary Authority (HKMA) is studying a moderate increase in gold holdings within the Exchange Fund.

The plan aims to build a comprehensive international commodities trading ecosystem by advancing the coordinated development of gold trading-related clearing systems, warehousing, supply chains, and infrastructure. A one-stop platform integrating storage, trading, clearing, and services will be established, with a long-term goal of benchmarking against major international gold trading hubs.

The SAR government has already made progress in this area, with the London Metal Exchange (LME) including Hong Kong in its global warehouse network in 2025. The storage area of LME-approved warehouses in Hong Kong has exceeded 60,000 square meters, with storage capacity surpassing 20,000 metric tons of metal.

The new gold central clearing and settlement system is scheduled to launch in the first quarter of 2027, at which point Hong Kong will possess gold central clearing capabilities that meet international standards. A new RMB-denominated, physically settled gold futures contract will also be announced, along with optimized regulatory framework for over-the-counter derivatives.