PBOC Shifts Gold Reserves to Hong Kong, Bolstering City's Global Trading Hub Ambitions
The People's Bank of China (PBOC) is accelerating its transfer of gold reserves to Hong Kong, solidifying the city's position as a global gold trading hub. This move demonstrates PBOC's commitment to supporting Hong Kong's development in this area.
According to sources familiar with the matter, the PBOC has significantly increased its gold inventory in Hong Kong over the past few months while continuing to transfer some of its reserves from London. This trend is expected to persist, reflecting China's long-standing strategy to bring its gold reserves 'home'.
The move also bolsters Hong Kong's gold clearing system, which began trial operations last month and includes a new benchmark price. The PBOC Governor, Pan Gongsheng, publicly pledged to increase the allocation of national foreign exchange reserves in Hong Kong, and this action is seen as fulfilling that commitment.