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Hong Kong invites BRI central banks to new gold clearing system as it seeks London alternative
Hong Kong has invited central banks of countries participating in the Belt and Road Initiative to join a new gold clearing system, aiming to position the city as a global alternative to London as the principal hub for precious metals trading.
The move complements Beijing’s recent efforts to persuade sovereign holders to domicile their gold reserves on the Chinese mainland and forms part of a broader macroeconomic strategy to raise the international appeal of the yuan as an investment currency.
This year, Hong Kong authorities launched a major public campaign to promote the special administrative region as a center for gold trading, financing, and physical storage. A pilot launch of the state‑backed clearing system is planned for this year. The city has also signed a formal cooperation agreement with the Shanghai Gold Exchange and approved plans to expand vault capacity to 2,000 metric tons over the next three years.
Central bank participation could materially strengthen Hong Kong’s market position given the vast volumes of physical gold held in official reserves. Nonetheless, Hong Kong faces stiff regional competition. Thus, Singapore is executing its own vault expansion program and has already attracted financial firms, including JPMorgan Chase and UBS Group, to bolster market liquidity.
Monetary authorities in Hong Kong are finalizing technical specifications for the clearing system, including acceptable bar standards and the list of settlement currencies. The platform is expected to rely on the London Good Delivery standard, which has historically served as the benchmark for the global physical gold market.
Published 01 April 2026
© InstaFintech Group
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© InstaFintech Group
