Golden targets

Growing need for diversification The move comes as global central banks aim to diversify their reserves amid heightened geopolitical tensions and concerns over asset weaponization. Maximizing strategic position Hong Kong now ranks among the world's largest gold import and export markets by volume due to its proximity to major gold consumption markets like the mainland and India, according to Financial Secretary Paul Chan Mo-po. Meanwhile, tax incentives and other measures should support the Airport Authority's plans to expand precious metals storage facilities, and large Chinese enterprises like China Merchants Group and Sinopec should be encouraged to expand commodity storage and logistics facilities in Hong Kong, says Tan. In developing Hong Kong's gold futures trading and expanding into other nonferrous metals and commodity futures, Fang Zhou, research director of the One Country Two Systems Research Institute, cites Hong Kong's proximity to the mainland - one of the world's largest consumers and importers of commodities, yet still relatively isolated from international markets given low pricing power. "When developing its futures market, Hong Kong must also coordinate with existing mainland futures exchanges to ensure complementary development and strategies, avoiding harmful competition," says Fang.