Hong Kong must build up global gold trade amid stiff competition from Singapore: John Lee

Chief executive calls for immediate action to build from ‘low base’, keep up with Singapore’s launch of vault with 500-tonne gold depository

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Hong Kong has a vault that can store 150 tonnes of gold bullion, but Chief Executive John Lee has called for the city to increase its capacity. Photo: Shutterstock

Published: 12:53pm, 17 Oct 2024Updated: 10:00pm, 17 Oct 2024

Hong Kong must move quickly to regain a strong position as an international gold trading centre, which can be a “game-changer” for the economy, the city leader has said, as competition heats up in the region following Singapore’s recent opening of a 500-tonne depository.

Chief Executive John Lee Ka-chiu on Thursday admitted that Hong Kong needed to take action to build up its gold and commodity trading market which currently “has a low base”.

“We have a gold vault of around 150 tonnes at the airport, but recently a country constructed a vault with a capacity of 500 tonnes,” he said on a radio show a day after delivering his annual policy address. “We have a lot to keep up with, we need to take action now.”

In August, private metals company Silver Bullion unveiled a six-storey vault occupying 16,700 square metres (180,000 sq ft) near Singapore’s Changi Airport. The vault is designed to store up to 10,000 tonnes of silver and 500 tonnes of gold.

Financial Secretary Paul Chan Mo-po said authorities were fully aware of the market competition but were confident in Hong Kong’s ability to succeed.

“Hong Kong is very well positioned. And one unique advantage that we have, which the other cities in the region would not be able to enjoy, is the strong support from the central authorities, meaning that the different parties on the mainland would be able to give us support in taking forward this initiative,” he said. “The challenge before us is how to converge the supply and the demand and take advantage of it.”