Officials from Hong Kong and Singapore pitched rival plans to build gold trading hubs in Asia at the LBMA's annual meeting in Sorrento, setting up a race for the region's bullion business.
Hong Kong's Christopher Hui, secretary for financial services and the treasury, touted trial operations of a gold clearing system launched in July along with a new price benchmark, plus details of offshore-yuan gold futures due later this year. Singapore's Lim Cheng Khai of the Monetary Authority of Singapore countered with plans to connect London OTC trading, New York futures and Asian producers.
Both centres are courting central banks, whose 39,000 tonnes of global reserves could supercharge either hub through gold lending. Some at the conference said the market is deep enough for both to thrive — the harder part is persuading traders to move business from established centres.
