Hong Kong is making a major move to become Asia’s premier gold hub. With the launch of a new gold clearing system (HKPMCC) and a new gold price benchmark (HAU), Prof. Yang Liu from HKU Business School highlights three core shifts taking shape in his interview with China Daily:
A safer haven: with gold trade becoming more secure and standardised, regional institutions can hedge risks based on a local benchmark, reducing reliance on the global gold prices largely set by London and New York.
More options for investors: financial institutions can now design more localised products such as notes, ETFs and other wealth management solutions that better suit Asian currencies, interest rates and regional investor demand.
A Boost for Renminbi: with new RMB-priced products and trading channels on the way, gold and other precious metals across Asia could, over time, be traded in Renminbi as readily as in US dollars.