Standard Chartered weighs building gold vault in Hong Kong

Standard Chartered is considering establishing its first gold vault in Hong Kong, as the city advances its goal of becoming an international gold trading center.

Tsang Kai-chi, Head of Markets, Financial & Strategic Clients for Standard Chartered in Hong Kong, Greater China, and North Asia, said the initiative is at an early stage and under review in response to government policy support and growing client demand, with various site options being assessed.

The Hong Kong government established “Hong Kong Precious Metals Clearing Limited” in January, with Standard Chartered Hong Kong serving as one of its shareholders.

Kai-chi noted that the bank is a key player in Asia’s gold trading market and one of the few foreign banks in Hong Kong with a precious metals trading desk, maintaining close cooperation with policymakers.

Standard Chartered currently offers precious metals trading and gold price hedging via OTC derivatives to institutional clients, and serves as the custodian, trustee, and exclusive gold provider for the LionGlobal Singapore Physical Gold Fund/ETF.

A storage facility would expand its capabilities into full trading, settlement, and storage services and could become its first self-owned gold vault.

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