Joshua Rotbart: «Hong Kong’s Strategic Push Into Gold»
This op-ed by Joshua Rotbart, founder and managing partner of J.Rotbart & Co., explores why this moment offers investors a distinct opportunity through Hong Kong.
On September 17, 2025, news agency «Bloomberg» reported that Hong Kong is expanding its gold market and inviting China to participate. The move includes plans to boost the city’s gold storage facilities, deepen integration with mainland China, and enhance cross-border gold flow mechanisms.
This isn’t symbolic. The Hong Kong government is clarifying that developing an international gold trading market is part of its core economic strategy. In his latest policy address, Hong Kong’s Chief Executive John Lee reaffirmed that establishing such a market is among the key measures to strengthen the city’s global financial role.
Authorities hope to attract both institutional capital and sovereign-level participation by positioning Hong Kong as an interoperable node between global gold markets and China’s domestic system.
China’s Gold Strategy: Custody, Reserve, Influence
Hong Kong’s ascent isn’t happening in isolation. Beijing has accelerated its gold maneuvers, offering opportunities for Hong Kong to take on a significant role.
China courts sovereign gold reserves
As of September 23, «Bloomberg» reported that China is actively courting foreign central banks to hold their sovereign gold reserves within its borders using the Shanghai Gold Exchange (SGE) as a platform. The People’s Bank of China (PBOC) is proposing that friendly nations purchase physical gold and store it in Chinese-linked vaults, in effect making China a custodian of foreign holdings.
More Than a Gesture
Such custody deals offer Beijing increased clout in global financial architecture, align with de-dollarization ambitions, and encourage geopolitical alignment. Some sources indicate that at least one Southeast Asian country has already expressed interest.
Easing import restrictions
China is working to smooth gold imports, recognizing that liberalizing bullion access is vital for a more open and robust market. This supports a broader strategy to facilitate gold flows, increase transparency, and deepen liquidity.
The SGE’s International Board, allowing foreign participation in China’s gold market, is now being leveraged to connect with Hong Kong-based vaulting and trading. In effect, Hong Kong could become the outward face of China’s gold ambitions, the interface for foreign investors, central banks, and fund managers to interact with China’s gold infrastructure.
Central Banks and Gold: Momentum from Above
Institutional demand fuels gold’s resurgence – Central banks have returned as dominant bullion buyers, seeking safety, autonomy, and diversification. China has been on a gold-buying spree. It has added to its reserves for over ten months, lifting them to 74.02 million fine troy ounces at the end of August (up from 73.96 million in July), contributing to upward pressure on gold prices.
Analysts note that China ranks fifth globally in official gold holdings, indicating potential for further accumulation. Moreover, gold recently hit record highs above $3,770 per ounce, with traders factoring in China’s custody proposals and future rate cuts. Many central banks, especially in emerging markets, are diversifying away from dollar-centric assets.
The 2022 sanctions on Russia, which froze billions in foreign reserves, prompted a shift. Gold is increasingly seen as protection against geopolitical risk, sanction risk, and currency volatility. This macro tailwind helps set the stage for Hong Kong. As demand flows upstream, the infrastructure must exist to capture it. Hong Kong’s enhanced vaulting, trading, custody, and regulatory framework positions it to absorb a meaningful portion of that inflow.
Market Signals: IPO, Listings, Institutional Confidence
It’s not just sovereigns and central banks making moves. Commercial actors are signaling confidence in Hong Kong’s gold ambitions. Case in point, Zijin Gold International, a subsidiary of China’s Zijin Mining Group, is launching a $3.2 billion Hong Kong IPO.
The move consolidates Zijin’s overseas gold assets under a Hong Kong-listed vehicle, attracting major institutional investors like GIC, BlackRock, Schroders, and Hillhouse. This is more than a listing; it’s validation. If a major gold producer is using Hong Kong to raise capital and anchor global strategy, it signals confidence in the region’s gold infrastructure, liquidity, and access to global investors.
Hong Kong’s Competitive Levers
As Hong Kong positions itself as a new hub for global gold flows, its advantages and challenges are clear. The city’s unique role as China’s gateway, strong legal and financial systems, and government support provide momentum. Yet questions around trust, competition, and regulation remain important to long-term success.
Competitive Advantages
Gateway to China — Hong Kong’s unique status as a bridge to China offers access that few financial centers enjoy. By integrating with the SGE, Hong Kong can channel capital into China’s gold market while maintaining international custody standards and regulatory oversight.
Strong Infrastructure – Hong Kong has world-class financial and legal systems, mature custodianship, and a reputation for transparency. These institutional strengths are critical for attracting global investors cautious about emerging markets.
Policy Backing – With the government openly pledging to build a gold trading market, policy tailwinds are strong. The timing aligns with China’s broader gold ambitions, offering synergy.
Key Observations for the Future
While Hong Kong’s progress as a gold hub is undeniable, there are factors to monitor as the market evolves. Trust perceptions remain important, as some central banks may take time to store reserves in vaults linked to Chinese influence.
Global competition sets a high bar; London and Zurich benefit from deep liquidity and centuries of established confidence, and Hong Kong must demonstrate consistency to match that standard. Finally, cross-border custody frameworks must remain transparent and enforceable to ensure investor confidence.
Rising Gold Corridor
These considerations are not barriers but milestones, shaping how quickly Hong Kong secures its place among the world’s leading gold centers. This moment offers opportunity for investors and institutions: early movers can benefit from access to China’s flows and position themselves within a rising «gold corridor.»
Joshua Rotbart, is managing partner of J. Rotbart & Co., a Hong Kong-based firm specializing in investments in gold and other precious metals.
