Hong Kong efforts to become global Gold hub paying dividends

Western markets – London, New York, and Switzerland – have dominated the gold trade for nearly two centuries. However, with gold progressively flowing from the West to the East, Hong Kong has been developing the infrastructure to become a major gold hub and challenge Western dominance.

Those efforts are starting to pay off as Chinese gold imports from the Chinese Special Administrative Region (HKSAR) surged by 81.2 percent month-on-month in April.

According to data released by the Hong Kong Census and Statistics Department, China imported 86.7 tonnes of gold from the HKSAR in April, up from 47.9 tonnes in March.

These flows will likely increase as new policies go into effect this summer.

A new Hong Kong-based gold-clearing system will launch in July, according to anonymous officials close to the matter quoted by Bloomberg.

The government-owned clearing system will reportedly “mirror” the financial infrastructure used by the LBMA in London. Participants will be able to settle trades through “unallocated” accounts, meaning that the customer can hold a claim against a clearer on a quantity of gold without the need to own specific numbered bars.

The HKSAR has also inked a cooperation pact with the Shanghai Gold Exchange to “promote long-term interconnectivity opportunities, with a more integrated renminbi-based Asian gold market in the making.”

Under the cooperative agreement, the Hong Kong Precious Metals Central Clearing Co. (wholly owned by the HKSAR government) will establish “a high-level, collaborative governance structure,” with the Shanghai Gold Exchange providing technical and regulatory input on system design, rulemaking, institutional access, risk management, and operational standards.

Cooperation between the Hong Kong clearing company and the Shanghai Gold Exchange will reportedly include facilitation of physical gold delivery, warehousing, and further enhancement of financial connectivity between the two markets.

Policy changes by the Chinese government will also facilitate gold flows between Hong Kong and the mainland.

According to a report from BigGo Finance, "multiple" Chinese banks plan to relax restrictions on gold accumulation plan services.

“Industrial and Commercial Bank of China (ICBC) lowered the risk rating for its Ruyi Gold Accumulation Plan from R3 to R2, while China Construction Bank (CCB) adjusted risk-level nomenclature. Industrial Bank, China Merchants Bank, and others extended night trading hours to 2 a.m. the following day. China CITIC Bank, Bank of China, and others introduced fee discounts.”

In addition to adjustments in risk ratings, multiple banks have also implemented policy changes to their gold services to increase convenience and lower costs.

“Industrial Bank partnered with JD Jinyue (Xiamen) Digital Technology Co., Ltd. in April this year to conduct a gold accumulation distribution business and, starting May 8, extended trading hours on its mobile banking and online banking channels—from the previous latest close of 11 p.m. to 2 a.m. China Construction Bank, China Merchants Bank, Bank of Jiangsu, China Minsheng Bank, and others have also successively launched night trading services to cover active periods in the international gold market.”

Meanwhile, China CITIC Bank launched a 50 percent fee discount for gold accumulation plan fixed investments, running through June 30. Other banks have also launched initiatives to incentivize gold trading.

“Bank of China introduced a ‘Friday Theme Day Discount’ in the first half of this year, where clients making gold accumulation purchases or fixed investments on Fridays enjoy a fee reduction of 1 yuan per gram. China Everbright Bank also recently launched a gold accumulation fixed-investment gift campaign, using WeChat instant discount coupons and other means to attract new clients.”

According to the BigGo note, these moves all signal Chinese bullishness on gold and that “banks are reaching a consensus on an upward shift in the gold price floor.” They also view gold as “a vital tool in China’s retail wealth management.”

Hong Kong’s focus on gold has helped it surpass Switzerland as the world’s largest cross-border wealth hub, according to Boston Consulting Group’s 2026 Global Wealth Report.

“We are seeing wealth creation, cross-border capital flows, and investment ecosystems increasingly concentrated in a smaller number of globally connected hubs.” BCG managing director and partner Michael Kahlich said.

“Hong Kong’s rise reflects the growing gravitational pull of Asian wealth and capital markets.”

Gold tends to take a more prominent role in Asian investment strategy than it does in the West. The Asian market was a primary player in last year's gold bull market. Gold coin and bar demand hit a 12-year high of 1,374.1 tonnes in 2025 with a record-breaking value of $154 billion. More than half of that global coin and bar demand came from two countries – China and India.