Hong Kong has unveiled plans to expand yuan-denominated gold and commodity trading alongside record dim sum bond issuance and deeper mainland financial ties. Chief Executive John Lee's Policy Address sets out a central gold clearing system, higher bullion storage targets, and expanded bond connectivity with mainland China.
Hong Kong plans to raise its operational gold storage capacity to over 2,000 metric tons by 2030, part of Chief Executive John Lee's Policy Address on turning the city into the world's dominant offshore yuan hub. The plan pairs that gold buildup with record dim sum bond issuance and closer financial ties to mainland China.
A central gold clearing and settlement system entered its trial phase in July 2026, with an official launch targeted for Q1 2027. The push also includes cooperation with mainland exchanges on commodities and gold trading.
Hong Kong's offshore yuan bond market has grown well past its novelty phase. Issuance hit RMB 1 trillion for two consecutive years through 2025, and outstanding bonds climbed to roughly RMB 1.27 trillion earlier in 2026, an increase of over 60%. In August 2026, State Grid issued RMB 14.9 billion in dim sum bonds, with the order book more than 13 times subscribed.
Hong Kong's government now plans to increase both the frequency and scale of dim sum bond issuances, backed by the Ministry of Finance on longer tenors, and Hong Kong Exchanges and Clearing Limited will introduce a new Offshore RMB Bond Index. Offshore yuan lending in Hong Kong reached RMB 935 billion in 2025.
The Southbound Bond Connect quota was raised 60% to 800 billion yuan in July 2026, and the RMB liquidity facility with the Hong Kong Monetary Authority was expanded to 500 billion yuan during the same period.
Source: Crypto Briefing
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