The Hong Kong Special Administrative Region government is ramping up efforts to transform Hong Kong into a regional hub for gold and commodity trading, deploying a mix of tax incentives, land allocations, and infrastructure expansions to attract global market players.
The Transport and Logistics Bureau will introduce an amendment bill later this month to offer 50 percent tax concessions to eligible commodity traders.
Under Secretary for Transport and Logistics Liu Chun-san said at a Legislative Council meeting on Thursday that the incentive aims to encourage commodity enterprises to establish or expand their operations in Hong Kong, which will drive growth in the city’s maritime services sector.
Demand for warehousing and logistics land is expected to rise as the commodity trading ecosystem grows, Liu added. The HKSAR government has reserved 32 hectares of land in the Hung Shui Kiu / Ha Tsuen New Development Area within the Northern Metropolis for a modern logistics cluster.
Hong Kong is leveraging gold as an entry point to develop its commodity ecosystem, according to Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.
To establish itself as regional gold reserve hub, the city has set a target to increase its storage capacity to over 2,000 metric tons within three years, Hui said.
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Moreover, Hui noted that the central clearing system for gold aligned with international standards is in its final preparatory phase and is slated for a trial operation this year.
The government will also consider providing tax incentives to qualified institutions conducting gold trading and settlement in Hong Kong to attract them to settle down or expand their business in the city, he added.
Apart from the precious metals market, China is also a key consumer and producer of non-ferrous metals, playing an important role in the global metal supply chain.
Hui said that since Hong Kong joined the London Metal Exchange’s global warehousing network in early 2025, a total of over 42,000 square meters of storage space has been put into operation, an increase of more than 1.5 times compared to July 2025.
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“In the long term, Hong Kong will be more eligible to promote more commodity transactions to be priced and settled in renminbi,” he added.
Feng Yuhao contributed to the story.
Contact the writer at irisli@chinadailyhk.com