China is moving decisively to strengthen its grip on the global gold market, with Hong Kong emerging as a central pillar in that strategy. By expanding trading infrastructure, boosting storage capacity, and integrating more closely with mainland exchanges, Beijing aims to increase its influence over international gold pricing, which has long been dominated by Western financial centers such as London and New York. At the same time, Hong Kong’s stock market is playing a complementary role, serving as a fundraising platform for mainland mining companies pursuing overseas mergers and acquisitions to secure gold resources.
Speaking at the first gold trading session of the Year of the Horse, Joseph Chan Ho-lim, Hong Kong’s Undersecretary for Financial Services and the Treasury, outlined an ambitious plan to transform the city into a leading regional hub for gold storage and trading.
“Our goal is to expand the country’s market share and influence in the international gold market,” Chan said. The strategy includes expanding Hong Kong’s gold storage capacity to more than 2,000 metric tonnes within three years and offering incentives for bullion dealers to establish or enlarge refining operations in the city. Authorities are also strengthening cross-border collaboration with mainland China to integrate precious metals trading and regulation more closely. A cornerstone of the initiative is the launch of a fully state-owned gold clearing platform, expected to begin trial operations later this year. The system will provide clearing and settlement services designed to position Hong Kong as a credible alternative to established Western bullion markets.
At the same time, officials are working to align the Shanghai Gold Exchange (SGE) more closely with Hong Kong’s gold market, deepening financial integration between the mainland and the Special Administrative Region. A memorandum of cooperation with the Shenzhen Municipal Financial Regulatory Bureau aims to improve regulatory coordination and liquidity flows to support local gold dealers.
Hong Kong Chief Executive John Lee first articulated the city’s gold-trading ambitions in late 2024, pledging to turn the territory into an international center for bullion trading.
Lee noted that Hong Kong is already one of the world’s largest gold import and export markets by volume. He emphasized that the city’s stability and security, even amid complex geopolitical tensions, make it an attractive location for investors seeking reliable gold storage supporting related activities such as settlement, delivery, insurance, logistics, and derivatives trading.“This will spur development across the entire gold industry chain,” Lee said. The push comes amid record-high gold prices and shifting geopolitical dynamics. Analysts say Beijing sees an opportunity to capitalize on growing concerns about the U.S. dollar’s role in global finance, particularly as Washington increasingly uses economic tools as instruments of foreign policy.
China’s strategy extends beyond commercial trading. The Shanghai Gold Exchange has been expanding its offshore vault network, including facilities in Shenzhen’s bonded zone, to attract sovereign gold reserves from other countries.
Bloomberg reported that Cambodia’s central bank is expected to be among the first to store part of its gold reserves in SGE vaults in Shenzhen. Other central banks have also expressed interest. Cambodia holds approximately 54 tonnes of gold, about a quarter of its $26 billion in foreign exchange reserves, according to the World Gold Council. Its interest in Chinese vaulting services reflects close economic ties with Beijing. Through the Belt and Road Initiative, Chinese companies have financed and constructed major Cambodian infrastructure projects, including a new airport in Phnom Penh, expressways, and canals. China also holds roughly one-third of Cambodia’s external debt, and bilateral trade reached a record $15 billion in 2024. Analysts view the effort to attract official gold reserves as part of a broader push to reshape the global bullion market and elevate the international role of yuan-denominated precious metals products.
In parallel with infrastructure development, Hong Kong’s equity market has become an important source of capital for mainland mining companies seeking to expand abroad. By raising funds in the territory, Chinese miners are financing the acquisition of overseas gold assets, securing supply, and strengthening China’s upstream position in the global value chain.
This combination of physical infrastructure, financial market development, and overseas resource acquisition reflects a coordinated strategy. As more countries repatriate gold from traditional hubs like London and reconsider their reliance on the dollar-based financial system, Beijing appears determined to ensure that the next phase of global gold trading runs increasingly through Chinese channels. By leveraging Hong Kong’s international connectivity and legal framework alongside mainland China’s financial and industrial scale, Beijing is laying the groundwork for a more influential role in setting the rules and prices of the global gold market.