Hong Kong is considering tapping into the Exchange Fund to buy more gold as part of efforts to boost trade in gold and transform the city into a world trading centre for the precious metal, according to Chief Executive John Lee. The fund serves as the city's de facto sovereign wealth fund and war chest to defend the Hong Kong dollar's peg to the US dollar, totalling HK$134.7 billion in the first six months of this year. In delivering his Policy Address, Lee noted that the Hong Kong Monetary Authority (HKMA), the city's de facto central bank that manages the fund, is exploring the possibility of raising the Exchange Fund's gold holdings and participating in the local spot and futures market. "It (HKMA) is also considering gradually transferring its physical gold holdings to designated vaults appointed by the Hong Kong Precious Metals Central Clearing Company Limited (PMCC)," Lee added. The PMCC is a government-owned company that previously launched a trial clearing and settlement system for gold in early July. Speaking at the Legislative Council, Lee said the gold clearing and settlement system would start its official operations in the first quarter of next year, adding that a dedi
