At the 19th Asian Financial Forum (AFC) held in Hong Kong recently, the Financial Services and the Treasury Bureau (FSTB) of the Hong Kong Special Administrative Region Government signed a cooperation agreement with the Shanghai Gold Exchange, announcing multiple new measures to promote the development of the Hong Kong gold market, covering key areas such as warehousing, clearing, and cross-border cooperation. The above measures send a clear signal that Hong Kong is accelerating the construction of an international gold trading center. What is the intention behind Hong Kong's increased construction of an international gold trading center? As the Secretary for the Treasury of Hong Kong, Eddie Hui, has stated, the strategic importance of gold has become more prominent in the context of increasing geopolitical uncertainty, persistent inflationary pressures, and the restructuring of the international monetary system. Hong Kong will seize historical opportunities to create lasting value for global investors and economies. In the 1970s and 1980s, Hong Kong was an important gold trading hub, but as gold trading markets such as New York and London matured, Hong Kong's advantages faced challenges. In recent years, Hong Kong has taken frequent actions to accelerate the development of the gold market. Hong Kong Chief Executive Carrie Lam proposed policies of "building an international gold trading center" and "accelerating the establishment of an international gold trading market" in his 2024 and 2025 policy addresses, respectively. The information released at this forum is an extension and refinement of this vision. Gold trading tests warehousing, logistics, and settlement capabilities. As an international shipping and trading center, Hong Kong has the basic conditions to build an international gold trading center. The Hong Kong SAR government has proposed to promote the expansion of Hong Kong's gold storage capacity, with the goal of exceeding 2000 tons within three years. Lu Jinrong, a member of the National Committee of the Chinese People's Political Consultative Conference in Hong Kong and President of the Hong Kong Chinese Manufacturers' Association, pointed out that Hong Kong has advantages in both shipping and trade. Gold can be stored immediately upon arrival from overseas, and intra Asian transactions are expected to achieve same day settlement, which can help reduce time costs and operational risks, and also drive the development of supporting professional services such as testing, insurance, and logistics in Hong Kong. Building an international gold trading center can further consolidate and enhance Hong Kong's position as an international financial center. The Hong Kong Gold Central Clearing System, which is planned to be put into trial operation within this year, is considered an important part of building the infrastructure for the gold trading market. Industry insiders believe that Hong Kong, as the world's largest offshore RMB business hub, can provide sufficient liquidity support for various gold transactions and enhance the international influence of RMB denominated gold. Hong Kong Economic Think Tank Chairman Shi Zhu told me that if the relevant arrangements are gradually implemented, Hong Kong is expected to fill the trading gap between New York and London, and promote the global gold market to operate more around the clock. At the same time, through interconnection with the Shanghai Gold Exchange, Hong Kong can undertake the huge consumption and investment demands of mainland China, attract overseas capital participation, and seize opportunities in the global trend of gold pricing power shifting eastward. In promoting the coordinated development of the gold market between Hong Kong and the mainland, the SAR government also has a far-reaching focus. In addition to deepening cooperation with the Shanghai Gold Exchange, the Hong Kong Treasury Board has signed a memorandum of cooperation with the Shenzhen Local Financial Authority on processing trade cooperation between Hong Kong and Shenzhen. Hong Kong gold merchants can engage in substantive cooperation with qualified refining enterprises in Shenzhen, providing a practical path for the "Hong Kong import, Shenzhen refining, global oriented" industrial chain synergy model. Vast and boundless, setting sail with the trade wind. Hong Kong's plan to build an international gold trading center, fully based on its own strengths, serves the needs of the country, and participates in global competition, has great potential and promising prospects. (New Society)