Hong Kong's Secretary for Financial Services and the Treasury, Christopher Hui, has revealed that the Hong Kong Gold Central Clearing and Settlement System will officially commence operations in the first quarter of next year, describing this development as laying the foundation this year and formally opening for business next year.

He expressed full confidence that the system will establish a substantial trading volume within the coming years, anticipating that Hong Kong's gold ecosystem will gradually take shape and enter a period of rapid growth.

In an interview with a newspaper, Christopher Hui mentioned that the Hong Kong Gold Clearing Company, which was established with government funding to promote gold trading business, has processed a considerable volume of gold through the system and related storage facilities since trial operations began this year.

However, he stressed that determining whether a market is truly successful cannot be measured solely by increases in trading volume or storage volume; the authorities must approach it from the overall layout of the value chain and ecosystem.

He pointed out that the board of directors of the Hong Kong Gold Clearing Company currently comprises 11 banks, six of which are international banks, and other banks have successively expressed interest in participating. The authorities will carefully assess the feasibility of opening up participation in the future.

On another front, Christopher Hui stated that the Treasury Bureau is studying the provision of tax concessions to dealers engaged in precious metals trading or settlement business in Hong Kong, primarily involving profits tax on corporate earnings.

Regarding the commodities business, he noted that the Transport and Logistics Bureau is exploring whether commodities arriving in Hong Kong by shipping could receive concessions, with relevant legislation currently in the pipeline.