Hong Kong Gold Central Clearing and Settlement System began trial operations
today. Under a January cooperation agreement, the Hong Kong Treasury Bureau and
the Shanghai Gold Exchange launched the first phase of “physical connectivity.”
The Hong Kong gold settlement company has applied to become an international
member of the Shanghai Gold Exchange and opened a physical-gold account;
participants can deposit held physical gold into the Shanghai exchange
international board’s Hong Kong-designated vault. Bi-directional transfers will
allow firms to access the Shanghai on-exchange market and Hong Kong OTC market,
enabling physical gold flows between the two systems.
