From January 1, 2025, a new trading institution named "Hong Kong Gold Exchange" will be established in the Hong Kong Special Administrative Region. This institution will be renamed and corporatized from the local silver and gold trading venue that has been operating for 114 years. The "Hong Kong Gold Exchange" will take over all trading activities related to gold, Silver, and other Precious Metals conducted by the trading venue.

The Hong Kong Gold and Silver Exchange announced that the "Hong Kong Gold Exchange" was officially registered in June 2024 and will hold a press conference on December 20, 2024, to announce the official name change and operation of the Hong Kong Gold Exchange. The chairman of the Exchange, Zhang Dexi, stated that the establishment of the Exchange aligns with the proposals in the "Policy Address" to elevate Hong Kong to an international Gold trading center, believing that the future responsibilities of the Exchange are significant.

Zhang Dexi mentioned that he, along with two vice-chairmen, Xie Manquan and Li Weihong, will join a government-established "Task Force for Promoting the Development of the Gold Market," hoping to provide advice to the government. The aim is to assist the Hong Kong government in becoming a Gold trading center in the short term.

Zhang Dexi stated that over the past year, he has actively advocated for a "Gold Commodity Link" to the Hong Kong government, which was acknowledged in the Chief Executive's "Policy Address." The report particularly mentioned constructing gold storage facilities and an international-grade Gold trading center, reflecting the government's high regard for the development of the gold industry and listing it as an important direction for promoting economic development and attracting talent and businesses. The industry is filled with anticipation for policy implementation and hopes to work with the financial sector to promote Hong Kong's economy.

The "Policy Address" proposed policies to support the establishment of international-grade gold storage facilities and trading centers, greatly encouraging the Precious Metals industry. Meanwhile, the Financial Services and the Treasury Bureau has established the "Task Force for Promoting the Development of the Gold Market," gathering industry and professionals, including Zhang Dexi, to solidify Hong Kong's status as an international Gold center. This task force will promote the expansion of related financial services, such as Insurance, certification, and Logistics, further facilitating the development and trading activities of Gold derivatives.

The Hong Kong Gold Exchange will replace the 115-year-old Gold and Silver Exchange, becoming the local spot exchange for gold and Silver.

In addition, the Hong Kong Gold Exchange plans to incorporate innovative elements into its existing trading products, such as digital Gold GoldZip, and aims to be listed on a locally compliant licensed Cryptocurrency trading platform. With the Gold market once again becoming the focus of Global and Hong Kong attention, the new Exchange hopes to attract more international Precious Metals traders to Hong Kong by pursuing innovation alongside tradition.

On December 25, "Hong Kong 01" reported that the "Policy Address" introduced new measures, determined to make Hong Kong an international Gold trading center. In recent years, amid turbulent geopolitical situations, experts believe that the changes in the larger framework have instead created opportunities for Hong Kong to "break out."

"Hong Kong 01" states that it is well known that the Hong Kong stock market is relatively developed, and people often regard it as a financial center. However, the financial center can also include the Bonds market, MMF market, Gold market, and CSI Commodity Equity Index market, among others. Hong Kong has announced plans to create a 'Gold Port' and has introduced several measures to strive to become an international gold trading center, which can be considered a 'good opportunity.'

Currently, the place for gold storage in Hong Kong is a vault located at the airport. Zhang Dexi admitted that the vault reserves he suggested to the Hong Kong government in earlier years were relatively conservative. Although the Airport Authority intends to increase the vault's storage capacity, it also values locations outside the airport, including the Northern Metropolis area and even the Lok Ma Chau Hedong area for establishing new vaults.

Zhang Dexi explained that since the vault at the airport is in a restricted zone intended to function as a transshipment point for gold, it is not convenient for gold traders to conduct settlement. On the contrary, if a vault is established in Lok Ma Chau, it is hoped that it will facilitate 'connectivity' with the mainland due to its proximity.

Zhang Dexi stated that for a certain period in the future, geopolitical tensions are unlikely to ease. The fluctuations in the exchange rates of several currencies have caused gold to regain attention. As a result, the purchases of gold by various central banks have become a driving force behind the growth in gold demand in recent years. Data shows that the share of central bank gold demand surged from 11% in 2021 to 23% last year.

Chinese mainland media, Finance magazine, reported that the Hong Kong Special Administrative Region is planning to explore the connectivity with mainland China's financial markets at an appropriate time. To promote this new mechanism of connectivity, relevant personnel in the Hong Kong Special Administrative Region are actively suggesting the promotion of 'Gold Commodity Pass.' This new mechanism, also known as 'Gold Pass,' may draw on the experiences of the Stock Connect and Bond Connect that have been implemented for several years.

The report pointed out that from the perspective of extending advantages along the Industry Chain, Hong Kong possesses stability, high security, and international characteristics, and it is also a key hub for gold trading within Asia.

Lawmakers in Hong Kong who have actively promoted related industry development, such as Li Weihong, analyzed in Finance that Hong Kong has a long history of engaging in trading gold commodity Futures derivatives. However, there is also the opinion that the overall push lacks sufficient strength, causing some industry experts to move their business overseas.

Currently, gold is the world's largest asset, with an asset scale reaching 17.88 trillion dollars. According to the World Gold Council, based on the primary uses of physical gold, global gold demand in 2023 reached 4,617 tons, of which gold jewelry accounted for 45%, gold bars and coins accounted for 26%, and central bank purchases accounted for 23%.

Meanwhile, Gold is also a liquid asset, with an average daily trading volume of 162.6 billion USD last year, second only to the S&P 500 Index in the USA.

Regarding the trend of Gold prices, Zhang Dexi stated that although the prices are not considered high, there is a slightly conservative outlook on the future of Gold prices. He believes that the foreign trade policies and the trajectory of interest rates following Trump's presidency will impact Gold prices. He expects that the opportunity for a significant downward adjustment in Gold prices is low and anticipates that Gold prices will stabilize above 2500 USD per ounce, aiming for 2850 USD per ounce.