Gold futures set for Hong Kong comeback as mainland China’s appetite for the metal grows
Fourth attempt since 1980s with 2,000-tonne storage target
The Hong Kong Exchanges and Clearing (HKEX) is preparing to relaunch gold futures within months, marking its fourth attempt since the 1980s. The last launch in 2017 offered contracts in both US dollars and yuan, but both have seen zero turnover for the past two years. This time, the government is actively building an ecosystem: Financial Secretary Paul Chan announced a central clearing system for gold with trial operations starting this year. The Hong Kong Airport Authority is also expanding gold storage capacity to exceed 2,000 tonnes within three years.
Asia accounts for roughly 60% of global annual gold demand. To capture this, Hong Kong listed a new gold ETF with physical redemption options last month. Lawmaker Robert Lee noted that previous attempts failed because they were exchange-only, but now the government and China support Hong Kong becoming a gold trading hub. The HKEX will seek market feedback to refine the new contracts.
- Fourth attempt since 1980s; 2017 contracts had zero turnover for two years
- Hong Kong building central clearing system and airport storage targeting 2,000+ tonnes in three years
- New gold ETF with physical redemption listed last month as Asia drives 60% of global demand
Why It Matters
Hong Kong aims to reclaim gold trading hub status as mainland China's appetite surges