Paul Chan: Hong Kong is accelerating the establishment of a central gold clearing system, with the goal of starting trial operations within the year.

According to Mars Finance, on January 18th, Hong Kong Financial Secretary Paul Chan published a personal essay entitled "Seizing Development Opportunities Amidst a Complex International Situation," in which he pointed out that gold's role as a central bank reserve, investment product, and risk hedging tool has been further strengthened. Gold prices are projected to rise by more than 60% by 2025, the largest increase since 1979. As of the third quarter of last year, global gold demand value rose 44% year-on-year to US$146 billion. The Hong Kong spot gold trading market has become significantly more active. As of November last year, the average daily turnover of 999 gold on the Hong Kong Gold Exchange more than doubled year-on-year, reaching HK$2.9 billion. Hong Kong is accelerating the establishment of a central gold clearing system as an important financial infrastructure to enhance the reliability and efficiency of gold trading and physical delivery in Hong Kong, reduce transaction costs, and increase liquidity. The goal is to launch a trial operation this year and invite the Shanghai Gold Exchange to participate.