Gold and other commodities markets can drive Hong Kong’s growth, finance chief says

Paul Chan notes city is strategically located between mainland China and India – two large consumer markets for gold

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Hong Kong is hoping to become a global gold trading hub to spur economic growth. Photo: Xiaomei Chen

Published: 2:11pm, 20 Oct 2024Updated: 4:20pm, 20 Oct 2024

The development of Hong Kong’s gold and commodities trade is expected to create “new growth momentum” for the economy, the finance chief has said, vowing authorities will focus on expanding the city’s storage capacity amid intense regional competition.

Financial Secretary Paul Chan Mo-po also said on Sunday that gold trading had significant growth potential as global demand was projected to “remain high” amid heightened geopolitical tensions.

He noted that gold was typically seen as a “safe-haven” investment during times of uncertainty.

“Whether it is developing the international gold trading market or establishing a commodity trading ecosystem, it can inject new impetus into multiple industries and create new opportunities,” Chan wrote in his weekly blog.

“As long as we choose the right development goals, plan a good development strategy and steadily advance towards our goals, we will surely release new growth momentum, accelerate Hong Kong’s economic upgrading … and make new and greater contributions to the development of the country.”

Chief Executive John Lee Ka-chiu last week delivered his third annual policy address, which included plans to bring Hong Kong’s gold trading market to an international level to help bolster the city’s status as a global financial hub.