Gold futures set for Hong Kong comeback as mainland China’s appetite for the metal grows
2026-05-07
City aims to broaden gold offerings and expand clearing and storage facilities to seize opportunities in the surging market
The Hong Kong Exchanges and Clearing (HKEX) is pressing ahead with the relaunch of gold futures as mainland China’s appetite for the metal continues to grow.
The city would continue to introduce new gold products and facilities to capture the growing opportunities of the gold market, Financial Secretary Paul Chan Mo-po said on Thursday at the LME Asia Metals Seminar 2026 in Hong Kong.
The HKEX planned to relaunch gold futures in coming months and seek market feedback to refine the products, Acting Secretary for Financial Services and the Treasury Joseph Chan Ho-lim told lawmakers on Monday.
It will be the fourth attempt since the 1980s. The most recent launch was in 2017, when the bourse operator introduced gold futures denominated in US dollars and yuan. While both contracts remain listed, there has been no turnover in the past two years, according to exchange data.
“This time is more optimistic because the previous launch was only by the exchange, but now the Hong Kong government is building an ecosystem of clearing and storage while China is also supporting Hong Kong to be a gold trading hub,” said Robert Lee Wai-wang, a Hong Kong lawmaker and chairman of Grand Finance Group, on the sidelines of the seminar.
Financial Secretary Chan said Asia accounted for some 60 per cent of global annual gold demand.
“To better capture these opportunities, we are building a central clearing system for gold, with trial operations scheduled for this year,” he said.
“Meanwhile, the Hong Kong Airport Authority is fast expanding gold storage capacity, with a target exceeding 2,000 tonnes within three years.
“Last month, Hong Kong also listed a new gold ETF [exchange-traded fund] with physical redemption options.”
The HKEX plans to relaunch gold futures in coming months and seek market feedback to refine the products, according to Acting Secretary for Financial Services and the Treasury Joseph Chan. Photo: Elson Li
The relaunch comes as China’s central bank continues to build reserves. Holdings rose to 74.64 million ounces at the end of April, up 260,000 ounces from the previous month, according to data from the People’s Bank of China. This marked the 18th consecutive month of increase.
The city is positioning gold at the centre of its push to become a global commodities hub. A new gold clearing system was set to start trial operations this year, Joseph Chan told lawmakers.
The Airport Authority and financial institutions also planned to upgrade facilities to lift total storage capacity above 2,000 tonnes within the next three years.
Gold surged 72 per cent in 2025, its biggest annual gain on record. Goldman Sachs has lifted its December 2026 forecast to US$4,900 per ounce.
“For China, especially Hong Kong, this is a strategic window that needs to be seized,” said Raymond Yeung, chief Greater China economist at ANZ Bank, in April.
Since the London Metal Exchange added Hong Kong to its warehouse network in January 2025, a total of 15 approved warehouses operated by seven companies had been put into service, holding about 24,000 tonnes of non-ferrous metals, according to the Hong Kong government.
Sources: SCMP
