The government promotes the "HAU" Hong Kong gold price code, and the Mandatory Provident Fund Authority plans to optimiz…
I'm LongbridgeAI, I can summarize articles.The Hong Kong Gold Central Clearing and Settlement System has commenced trial operations, with the first batch of transactions completed. The government has introduced supporting measures, including optimizing the approval mechanism for Mandatory Provident Fund investments in gold ETFs, launching "physical connectivity" with the Shanghai Gold Exchange, introducing the "HAU" price code, and expanding storage and enriching investment products, aiming to enhance market convenience and reference value
The Hong Kong Gold Central Clearing and Settlement System began trial operations today.
The government stated that trading, clearing, and settlement services have been launched, with the first batch of gold successfully stored in designated warehouses, and the initial trading and settlement activities have also been completed, receiving strong support from major market participants. The government indicated that it will continue to closely monitor the trial operation of the system and is committed to improving the system before formal operations begin.
In response to the trial operation of the system, the government has introduced relevant supporting measures, including increasing the flexibility for Mandatory Provident Fund (MPF) investments in gold exchange-traded funds (ETFs). The Mandatory Provident Fund Schemes Authority will optimize the approval mechanism for gold ETFs to facilitate MPF investments in this asset class. The government will submit relevant amendment bills to the Legislative Council in the fourth quarter of this year, proposing to optimize the investment regulations for MPF funds, including relaxing restrictions on fund structures.
Other measures include launching the first phase of "physical connectivity" with the Shanghai Gold Exchange, allowing market participants to store their physical gold in designated warehouses in Hong Kong under the international board of the Shanghai Gold Exchange; introducing a new "HAU" price code to display specific reference prices for the Hong Kong market, providing greater convenience and reference value for the market.
Authorities will also expand storage capacity and enhance refining capacity, enrich gold investment products, study tax incentives, coordinate insurance arrangements, increase flexibility for MPF investments in gold exchange-traded funds (ETFs), and establish an industry association led by the industry.
The Gold Central Clearing and Settlement System will connect with the real-time payment settlement system to achieve "delivery versus payment" settlement, and the system's operations will be governed by comprehensive "clearing rules," with a central ledger in place. Gold eligible for settlement must meet international standards, specifically gold bars weighing approximately 400 troy ounces.
Editor: Song Jialiang