In a landmark move set to redefine Asia’s precious metals trading landscape, Hong Kong and Shanghai have established a comprehensive partnership agreement aimed at creating an integrated renminbi-denominated gold market. The strategic accord, signed during the opening session of the 19th Asian Financial Forum, represents a coordinated effort to elevate China’s financial hubs within the global gold ecosystem.
The agreement was formally executed by Christopher Hui Ching-yu, Hong Kong’s Secretary for Financial Services and the Treasury, and Yu Wenjian, Chairman of the Shanghai Gold Exchange. Both officials characterized the partnership as a transformative milestone that will fundamentally reshape the regional gold trading architecture.
Secretary Hui emphasized the timing significance of this initiative, noting that “gold’s strategic importance has intensified amid prevailing geopolitical uncertainties, persistent inflationary pressures, and the ongoing restructuring of the international monetary system.”
Under the newly established framework, the Hong Kong Precious Metals Central Clearing Company—a wholly government-owned entity—will implement a sophisticated collaborative governance structure. This system will feature Secretary Hui chairing the board with representation from the Shanghai Gold Exchange serving as deputy chairman.
The Shanghai exchange will contribute substantial technical expertise and regulatory guidance across multiple domains including system architecture, rule formulation, institutional access protocols, risk management frameworks, and operational standards. Both parties have committed to synchronized efforts ensuring the efficient development of gold trade-clearing mechanisms aligned with international benchmarks.
Hong Kong Chief Executive John Lee Ka-chiu underscored the agreement’s broader implications, stating it will “initiate a cross-boundary trade-clearing system for precious metals” that enhances financial connectivity between the two markets.
The collaboration extends to physical infrastructure development, with Hong Kong targeting expansion of its gold storage capacity to exceed 2,000 metric tons within three years. Future cooperation will encompass physical delivery mechanisms, warehousing solutions, and broader ecosystem development.
The People’s Bank of China demonstrated strong institutional support through Deputy Governor Zou Lan, who witnessed the signing ceremony. The central bank pledged comprehensive backing for Shanghai’s participation in developing the clearing system and reinforcing Hong Kong’s ambition to become an international gold trading hub.
Industry representatives including Edward Au, Deloitte China’s Southern Region Managing Partner, noted the agreement’s relevance amid current financial fragmentation trends. While anticipating gradual rather than immediate capital inflows, Au projected that consistent policy execution would eventually yield deeper market participation and enhanced institutional accessibility across Asia’s gold market.