Singapore and Hong Kong Fuel Gold Trading Competition

Singapore and Hong Kong have launched a series of initiatives to strengthen their gold-trading ecosystems, sparking a new 'front' in the long-running competition between the two financial centers.

Market observers told Lianhe Zaobao that while there is overlap between the two markets, there is still room for them to coexist due to the vast size of the Asian market and rising demand for gold.

Singapore's efforts include developing gold-related capital market products, putting in place robust standards for vaulting and logistics, and building a clearing system for secure OTC settlement. The Monetary Authority of Singapore (MAS) is also providing vaulting services for foreign central banks and sovereign entities.

Hong Kong has trialed a new central clearing and settlement system for gold, expanded storage capacity, and refined capability, as well as launched the first phase of 'Delivery Connect' with the Shanghai Gold Exchange.