Acting Financial Secretary and Secretary for Financial Services and the Treasury, Chen Ho-lim, responded to questions from lawmakers, stating that the authorities will establish a task force within this year to develop proposals to improve the gold market trading and regulatory mechanisms. The discussion topics will include gold supply and demand, product development, standard applications, clearing mechanisms, logistics storage, inspection certification, talent development, and cross-border cooperation. He mentioned that the experience of over-the-counter related transactions shows that the commodity market, including gold financial transactions, has its own characteristics, and trading and ecosystems need time to establish. Both on-exchange and off-exchange trading in Hong Kong currently have potential, but relevant developments require detailed planning and gradual progress.

As a first step, the government will promote the construction of international standard gold storage facilities to attract more investors and users from different economies including the Middle East and Southeast Asia to store gold in Hong Kong. Building upon increasing storage facilities, it is hoped to expand insurance, testing certification, logistics, and other related business services. Simultaneously expanding mortgage, borrowing, hedging, and other related derivative trades, gradually constructing a complete ecosystem. This will promote comprehensive, multi-currency trading, clearing, settlement, and regulatory systems, including conducting transactions in offshore RMB, forming a complete gold trading center and related.Industry chainAt appropriate times, it will explore connectivity with various relevant entities in the mainland, including financial regulatory institutions, in order to connect with the mainland financial markets.