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HKEX Moves to Revive Gold Futures

The plan aims to pull more of Asia’s gold trade into Hong Kong through new clearing and storage.

Overview

  • HKEX confirmed it will pursue a new gold futures contract and consult market participants on contract terms and delivery, with no firm launch date yet.
  • Officials set trial operations for a central gold clearing system this year and target more than 2,000 tonnes of airport-linked storage within three years.
  • Hong Kong also listed a new gold exchange-traded fund with physical redemption last month to support a broader gold trading ecosystem.
  • Officials cite Asia’s roughly 60% share of global demand and recent price swings that pushed investors toward gold as the case for a reboot.
  • HKEX’s 2008 and 2017 efforts struggled with thin trading, and the 2017 dollar- and yuan-denominated contracts show no turnover over the past two years.