Hong Kong’s metal storage hits 30,000 tonnes in push to become global commodity hub

Fri Sep 18 2026

Hong Kong’s push to develop into a premier gold and commodity trading hub has gained momentum, with local metal storage surpassing 30,000 tonnes, a minister has said, as the administration positions the city as the “must-choose destination” for global capital. Secretary for Financial Services and the Treasury Christopher Hui Ching-yu also said on Friday the government would expand renminbi settlement of payments for mainland Chinese services, such as buying water from the Dongjiang, in a bid to boost the globalisation of the yuan.

“The significance of Hong Kong’s first five-year plan is a shift in mindset. We must plan Hong Kong’s financial development with a longer-term perspective and a broader vision, and respond with flexibility and diversity,” Hui said. “Every measure I introduce revolves around one goal: to elevate Hong Kong from a ‘must-pass route’ for capital to a ‘must-choose destination’ for capital.”

Chief Executive John Lee Ka-chiu rolled out an array of measures in his annual policy blueprint on Wednesday to accelerate the growth of the city’s international gold trading market, including a Joint Working Group on Commodity Trading chaired by Hui. The government will halve the profits tax rate for qualifying physical commodity traders from the standard 16.5 per cent to 8.25 per cent by next year, and the city’s Exchange Fund, used to defend the local currency, will increase its gold portfolio.

The policies followed the launch of the trial operation of Hong Kong’s gold clearing and settlement system in July, which aims to establish the city as a major trading centre and price-setter for the precious metal. The system is expected to begin operation officially in the first quarter of next year.

Speaking at a press conference, Hui noted total metal storage within Hong Kong’s London Metal Exchange warehouse network had crossed 30,000 tonnes, underscoring the drive to advance commodity trading. Hong Kong has recorded robust demand for gold imports as banks and logistics companies bet on Hong Kong’s expansion of its vaults for the precious metal.

Data from the Census and Statistics Department showed about 107 tonnes of gold entered Hong Kong in July, up from 72.16 tonnes in February. Hui noted that the trial operation of the gold clearing system had proceeded smoothly, attracting substantial deposits.

Beyond the 11 banks taking part in the trial, authorities received inquiries from other institutions interested in joining the gold trading ecosystem, which Hui described as a “good sign”.

On government payments, the policy address proposed expanding yuan payments for services rendered by mainland authorities. Hui said the arrangements were already in place on a limited scale and described the increase as a natural next step. He added that officials were considering paying in yuan for Dongjiang water supplies – which account for up to 80 per cent of the city’s fresh water from the Taiyuan Pumping Station in Dongguan city – as well as for training programmes run by mainland institutions.

At the same press conference, Secretary for Commerce and Economic Development Algernon Yau Ying-wah revealed that authorities were liaising with more than 40 companies interested in establishing a presence in the Northern Metropolis. “Many of them are in innovation and technology, including hydrogen energy [and] new energy development, and the other one is in quantum science, and we got another one building a logistics park,” Yau said.

To attract enterprises to the 30,000-hectare (74,130-acre) megaproject, which will feature several innovation hubs and university clusters, the government is offering tailored incentive packages featuring land-use facilitation, co-investment options and tax breaks based on operation scale.

Source: https://www.scmp.com/