Hong Kong is actively developing a complete ecosystem for commodity trading, with a focus on establishing an international gold trading market as the initial step. The trial operation of the Gold Central Clearing and Settlement System commenced in July this year. Concurrently, the Hong Kong Airport Authority has initiated a project for a thousand-tonnage level storage facility. Multiple private sector entities, including banks, are also actively expanding their storage capacities.
Building upon the foundation of strengthening the gold trading market, Hong Kong will leverage the experience gained from related trading and storage infrastructure to gradually expand into other precious metals businesses, aiming to construct a full-fledged commodity industry chain. Since January 2025, when the Hong Kong Exchanges and Clearing Limited's wholly-owned subsidiary, the London Metal Exchange, included Hong Kong as an approved delivery location and began accepting applications from warehouse operators for licensing, over 52,000 square meters of total warehouse space has been put into operation in Hong Kong as of the end of June 2026, with inventories exceeding 24,000 tons.
Among the seven metals currently approved by the London Metal Exchange for delivery in Hong Kong, copper and zinc are the most actively delivered. Their respective storage volumes in Hong Kong are 10,700 tons and 8,650 tons, accounting for 44% and 35% of the total storage, respectively. As the commodity trading ecosystem continues to develop, demand for related storage facilities and logistics land is expected to rise steadily.
The planning for the Northern Metropolis is industry-led. The government has reserved industrial land (including land for industrial, logistics, and storage use) in various new development areas, which can meet the warehouse land demand of the commodity sector. The government also plans to invite the logistics industry, including operators interested in developing commodity storage facilities in Hong Kong, to submit expressions of interest for the first plot of land in the logistics circle within this year, enabling the government to formulate a development model that aligns with industry needs.
The land use for the 23-hectare Hung Shui Kiu Industrial Park has been expanded to cover various industries, allowing for the development of commodity warehouses or supporting facilities. The statutory plot ratio restrictions have also been removed, providing greater development flexibility. The Hung Shui Kiu Industrial Park Limited is now operational and is formulating appropriate specific development plans and engaging with enterprises interested in locating within the park to accelerate industry introduction.
Furthermore, the Northern Metropolis Development Bill, which had its first reading on July 8 this year, will facilitate the planning and construction of commodity warehouses or supporting facilities. This includes enabling the use of innovative designs, materials, and construction techniques in related projects, or enhancing the quality, functionality, or sustainability of such projects in design or construction. If land use rezoning is required to accommodate commodity trading, a streamlined town planning process can be applied, reducing the time from the original minimum of nine months to two months.
Regarding attracting leading enterprises to establish operations in Hong Kong, the Financial Services and the Treasury Bureau, in collaboration with the Office for Attracting Strategic Enterprises and Invest Hong Kong, promotes the direction and specific measures for developing Hong Kong's commodity trading ecosystem through various meetings, visits, and large-scale events such as industry conferences, exhibitions, and seminars. With the support of Invest Hong Kong, several major commodity storage and logistics companies have already established London Metal Exchange and Chicago Mercantile Exchange delivery warehouses in Hong Kong, actively integrating into the local commodity ecosystem.