Hong Kong steps up bid to become global gold trading hub

Hong Kong will sign an accord with Shanghai next week to establish a cross-border gold trade clearing system, a move the finance chief has said will bolster the city's push to become an international trading hub for the precious metal, Report informs referring to the South China Morning Post.

Financial Secretary Paul Chan Mo-po revealed on Sunday that the city and the Shanghai Gold Exchange would sign a memorandum of understanding at next week's Asian Financial Forum to pave the way for greater connectivity between the two markets.

"We are accelerating the push to establish a central clearing system as a vital piece of financial infrastructure, to enhance the reliability and efficiency of gold trading and delivery in Hong Kong, lower transaction costs and increase liquidity," Chan said on his weekly blog.

He added that the goal was to launch trial operations within the year and invite the Shanghai Gold Exchange to take part.