Airport Authority Enthusiastic About Setting up Gold Depository at HKIA

(Hong Kong, 22 February 2006) - The Airport Authority Hong Kong (AA) welcomes the Government's initiative to consider providing a concession in trade declaration charges for gold, which will greatly facilitate the joint efforts by AA and the industry to establish a centralized gold depository at the Hong Kong International Airport (HKIA).

Demand for gold and other precious metals is expected to grow significantly following the opening up of the gold market in the Chinese Mainland. It is anticipated that China will experience the fastest growth in gold trading worldwide over the coming decades.

"With its efficient financial and aviation infrastructure, Hong Kong has a unique advantage in serving the rapidly growing precious metal markets of East Asia," said AA's Chairman, Dr Victor Fung, adding "The centralised gold depository will strengthen Hong Kong's position as one of the premier financial and logistics centres of the world." 

The gold depository aims to provide a centralised and secure storage facility to traders, institutional investors, producers and other end-users of precious metals. It will also serve as a common, physical settlement platform for trades made at metal exchanges such as the Chinese Gold & Silver Exchange and Shanghai Gold Exchange.

The depository will target to provide same day settlement of precious metal trading executed in Asian time zones. By directly depositing precious metals into the gold depository at the HKIA, gold dealers and merchants will be able to achieve considerable savings in transport and insurance costs.

"We will continue our discussion with the industry on a detailed plan to set up the gold depository in Hong Kong, and look forward to realising the plan within the earliest possible time," said Dr. Fung.