Hong Kong Establishes Working Group to Develop International Gold Trading Centre

Working Group on Promoting Gold Market Development established

Following the Chief Executive's announcement in the 2024 Policy Address to establish a working group under the Financial Services and the Treasury Bureau to comprehensively review all aspects relating to the development of a gold market, take forward the establishment of an international gold trading centre, and formulate plans on enhancing the trading and regulatory mechanisms of the market, conducting domestic and overseas promotion, etc, the Government announced today (December 18) that the Working Group on Promoting Gold Market Development has been established.

The Working Group is chaired by the Secretary for Financial Services and the Treasury. Members comprise relevant government officials, representatives of regulatory bodies, financial institutions, exchanges and industry stakeholders. The Working Group will also invite other industry experts to participate in discussions on specific issues.

The Secretary for Financial Services and the Treasury, Mr ChristopherHui said, "The establishment of an international gold trading centre is a new entry point to consolidate and enhance Hong Kong's status as an international financial centre. In this year's Policy Address, the Chief Executive stated that we would attract physical gold storage, drive gold trading, settlement and delivery activities, and even propel Hong Kong into being a gold trading centre. The Government will promote the development of world-class gold storage facilities, and building on the increased gold holdings, scale up associated support and financial services such as insurance, testing and certification, logistics, etc, as well as expanding related derivative transactions such as collateral, loans and hedging, etc, hence creating a comprehensive ecosystem in a progressive manner. This will promote a comprehensive multicurrency trading, clearing, delivery, and regulatory system, thereby establishing a holistic gold trading centre. We will also explore mutual access with the Mainland financial market when appropriate."

He added, "The Working Group, which brings together industry leaders and professionals, as well as representatives of financial regulators and market participants, will hold its first meeting this month. I look forward to working closely and actively discussing with members on formulating a comprehensive implementation plan for the development of Hong Kong's gold market."

The membership of the Working Group is as follows:

Chairperson

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Secretary for Financial Services and the Treasury

Non-official members

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Ms Peggy Chang

Dr Haywood Cheung

Mr Andrew FungHau-chung

Mr Robert LeeWai-wang

Mr Lv Haitao

Mr Ma Manfu

Mr Tse Moon-chuen

Mr Kent WongSiu-kee

Mrs Sally WongChi-ming

Mr Xu Lei

Ms Zhang Qiaochun

Ms Zhu Jing

Official members

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Permanent Secretary for Financial Services and the Treasury (Financial Services)

Representative of the Hong Kong Monetary Authority

Representative of the Securities and Futures Commission

Representative of Hong Kong Exchanges and Clearing Limited

FSTB welcomes Cathay Pacific's carbon credits settlement through HKEX's carbon marketplace Core Climate

The Financial Services and the Treasury Bureau (FSTB) today (December 18) welcomes Cathay Pacific Airways Limited's settlement of 50 000 tonnes of voluntary carbon credits, as part of their voluntary carbon offset programme, on the Hong Kong Exchanges and Clearing Limited (HKEX)'s carbon marketplace Core Climate.

The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "The transaction showcases how Hong Kong's green finance platform helps businesses achieve sustainability goals through our robust financial market infrastructures, and sets a benchmark example for more transactions to follow. This aligns with the vision of the Chief Executive's 2024 Policy Address in enhancing Hong Kong's green finance ecosystem and highlighting our role as a leading sustainable finance hub in Asia."

He added, "The Government will continue to support and promote co-operation and synergies between the HKEX and its Mainland and international counterparts in building a dynamic and trustworthy carbon marketplace. By enabling access to high-quality carbon credits verified by international standards, and facilitating interaction between local, Mainland and overseas carbon market participants, we aim to further strengthen Hong Kong's leadership in empowering green transition through finance."

The transaction highlights the role of Core Climate in supporting corporates on their climate transition journey, offering trustworthy settlement services to enhance efficiency and mitigate risks. It also reflects Cathay Pacific's commitment to sustainability as a leading airline in Hong Kong, and its efforts in proactively reducing carbon footprint. As the world's only carbon marketplace offering settlement in both Hong Kong dollars and Renminbi for international voluntary carbon credits at present, Core Climate provides businesses with access to quality carbon credits from internationally certified projects and reinforces Hong Kong's position as a leading regional hub for green and sustainable finance.

Besides promoting the development of the carbon marketplace, the FSTB last week published a roadmap on the full adoption of the International Financial Reporting Standards - Sustainability Disclosure Standards (ISSB Standards), leading Hong Kong to be among the first jurisdictions to align its local requirements with the ISSB Standards, reinforcing its leadership in sustainability reporting and disclosure, and furthering the efforts in building a comprehensive green finance ecosystem.

Hong Kong's commitment to carbon neutrality remains steadfast. The Hong Kong Special Administrative Region Government has pledged to achieve carbon neutrality before 2050 and reduce the city's carbon emissions by 50 per cent before 2035. These ambitious targets, coupled with initiatives like Core Climate and the adoption of international sustainability disclosure standards, position Hong Kong as a leading international green finance centre driving sustainable development in Asia and beyond.