October 2026
In Perspective
We are excited to have been featured in the Financial Times this August, where we discussed the Monetary Authority of Singapore’s (MAS) decision to lift the 5% cap on physical precious metals for 13O and 13U tax-exempt family offices and funds.
While this policy update enhances investment flexibility in Singapore, the ongoing debate over whether Singapore or Hong Kong offers a superior ecosystem for international trade continues. Rather than viewing this as a zero-sum contest, it is vital to examine the specific structural strengths that position Hong Kong as an unmatched commercial and financial hub in Asia.
Capital Efficiency & Tax Simplicity
Renowned as a premier free-market economy, Hong Kong offers a highly competitive tax framework designed for global business. The city levies no tax on capital gains, dividends, or interest income, and operates without a Goods and Services Tax (GST/VAT), dramatically lowering operational friction for cross-border commerce and high-value asset managers. Furthermore, under its territorial tax system, profits earned outside Hong Kong are generally exempt from local tax, providing exceptional simplicity for multinational holdings.
These structural advantages helped Hong Kong reclaim the top spot as the world's freest economy in the Fraser Institute's Economic Freedom of the World 2026 Annual Report, outpacing Singapore in third place.
Physical & Financial Infrastructure for Precious Metals and Commodities
As highlighted in our previous article, Hong Kong’s deep liquidity in precious metals stems from both its rich Chinese influence and its colonial legacy as a global trade hub. Its tight integration with world-class refiners continues to reinforce its position as an international financial center.
Last year, MKS PAMP has selected Hong Kong for its Asia-Pacific Regional Headquarters establishing one of its only three global trading centers alongside Geneva and New York.
Further cementing this status, Swiss refinery Valcambi disclosed plans this October to collaborate with Shiu Wing Steel, Hong Kong’s sole steel producer, to build a state-of-the-art gold refining and vaulting facility in the SAR (The Standard, 2026).
With industry giants such as Argor-Heraeus maintaining a strong presence in Hong Kong already, it shows that the city offers an unrivaled physical and institutional ecosystem for precious metal investors (The Standard, 2026).
Hong Kong as the Offshore Capital of Gold & RMB Internationalization
It is important to note that China is pushing further for yuan internationalization. As China builds a gold-backed cross-border payment framework independent of the US dollar, Hong Kong serves as the irreplaceable offshore delivery and vaulting gateway.
HKEX plans to launch yuan-denominated gold futures early next year, enabling Asian and Global South counterparties to price, trade and settle physical bullion in yuan. This underpins Hong Kong’s gold-trading ambitions and positions the city as the “bridge of gold” linking Shanghai’s pricing role with offshore vaulting, completing a gold-backed route for yuan internationalization and reinforcing Hong Kong’s long-term status as an international financial centre in a new era.
Hong Kong's geographic location and financial system have proven how she remains the primary gateway to mainland Chinese wealth, physical demand, and institutional capital flows.
Closing
As our CEO Jamie Turnough highlighted in his recent Financial Times interview, Hong Kong is “aggressively pushing to build a world-class international gold trading center.” While recent regulatory tweaks in neighboring hubs reinforce the growing importance of gold on an institutional investment scale, Hong Kong offers an unmatched ecosystem, combining deep physical infrastructure, sovereign alignment, and common-law stability.
As global investors and family offices re-evaluate their wealth preservation strategies, Hong Kong’s evolving role as Asia’s premier physical and financial gold bridge firmly secures its position as the region's leading commercial hub.
Keep shining.
Charlotte Wu
Sales and Marketing Specialist, Bullion Beasts