Hong Kong is moving at “Hong Kong speed” to build a full gold and commodities ecosystem while advancing the yuan, according to Treasury Secretary Christopher Hui in a new SCMP interview after the LBMA conference in Italy.
Key points:

️ Central gold clearing system (currently in pilot) launches formally in Q1 2027. It supports true DVP — physical delivery + cash settlement linked to RTGS — something London doesn’t currently offer in the same integrated way.

️ Direct “Delivery Connect” collaboration with the Shanghai Gold Exchange, with settlement facilities for both markets based in Hong Kong.

️ RMB gold futures details to be announced by HKEX before end-2026.

️Storage capacity targeted to exceed 2,000 tonnes within three years (government + private sector), plus more refining capacity coming onshore.

️ From the Oct 2024 Policy Address announcement to full clearing implementation in roughly 15 months — cited as concrete “Hong Kong speed.” Positive feedback from industry participants at LBMA on the timetable and readiness.

️LBMA Asia Forum coming to Hong Kong in April 2027, by which time the clearing house should be live.

️On the yuan: Hui framed it as serving the real economy, not just financialization. Asian economies (ASEAN is already HK’s second-largest trading partner) are trading more among themselves, and the RMB’s lower interest rates vs the USD make it increasingly practical for trade settlement and financing. Hong Kong remains the largest offshore RMB hub. Retail e-CNY acceptance among local merchants is also growing, helped by deeper integration with the mainland.

Overall pitch: Asia-time-zone venue that combines trading, storage, clearing, refining, and risk management under one ecosystem, with government backing and Shanghai connectivity.

DVP (Delivery versus Payment)
A settlement mechanism in which the transfer of an asset (e.g., physical gold or securities) and the corresponding payment occur simultaneously and are conditional on each other. One side only delivers if the other side pays, and vice versa. This eliminates the risk that one party delivers the asset but does not receive payment (or the reverse).

RTGS (Real-Time Gross Settlement)
A payment system in which transfers of funds are settled individually (gross) and immediately (in real time) once the payment is submitted and funds are available, rather than being batched and netted at the end of the day. In Hong Kong’s context, the gold clearing system is being linked to the city’s RTGS system so that cash settlement can happen instantly and irrevocably alongside the physical gold delivery under the DVP process.