Hong Kong has kicked off a trial of a brand-new central gold clearing and settlement system, backed by 11 heavyweight banks including JPMorgan, HSBC, UBS, and several of China’s largest financial institutions. The goal: make Hong Kong a gold trading powerhouse in Asia-Pacific and reduce regional dependence on London’s century-old infrastructure.
System operator
Developed by the Hong Kong Precious Metals Central Clearing Company (PMCC), a government-backed entity assembling infrastructure for a potential major shift in global gold market structure.
Functionality
Offers unallocated gold account settlements — the same model London uses. Banks trade gold without physically moving bars on every transaction.
Participating banks (11)
Agricultural Bank of China (Hong Kong), ANZ, Bank of China (Hong Kong), Bank of Communications (Hong Kong), China Construction Bank (Asia), Citi Hong Kong, ICBC (Asia), JPMorgan, Standard Chartered Hong Kong, HSBC, UBS AG.
Timeline
Settlements expected to begin the week of July 7, 2026. At least four participating banks have imported London Good Delivery gold bars to build inventories ahead of launch.
Board chaired by Christopher Hui Ching-yu, Hong Kong Secretary for Financial Services and the Treasury.
Shanghai connection
January 26, 2026: PMCC formalized MOU with Shanghai Gold Exchange for enhanced warehousing and cross-border clearing between Hong Kong and mainland China. SGE has board representation on PMCC.
Tokenization horizon
Discussions underway about integrating tokenized gold products. No crypto tokens tied to PMCC at launch — staged approach: clearing rails first, digital assets later. Relevant to existing tokenized gold products (PAXG, XAUT).