Hong Kong and Laos Sign Memorandum of Understanding to Promote Gold Trading; First Following Trial Operation of Central Gold Clearing and Settlement System

To advance Hong Kong’s gold market, Hong Kong has signed a cooperation memorandum of understanding with Laos—ranking among the top in Southeast Asia for gold resources—providing qualified Laotian gold holders with convenient access to Hong Kong’s recognized gold refining network, and encouraging broader adoption of internationally standardized refined gold bars for trading and delivery in Hong Kong.

This is the first memorandum signed following the trial operation of Hong Kong’s Central Gold Clearing and Settlement System, just two weeks after the launch. The agreement was signed by Paul Chan, Secretary for Financial Services and the Treasury of Hong Kong, and Deputy Prime Minister and Minister of Finance of Laos, Sonthi Phetsomphou.

Publicly available data indicates that while Laos has minimal gold reserves, it possesses abundant gold resources, with estimated unexploited reserves ranging from 500 to 1,000 tonnes and annual production of approximately 9 to 11 tonnes—ranking among the highest in Asia or the ASEAN region.

Beyond facilitating physical gold flows, the memorandum also covers talent training and financial technology collaboration, including tokenization initiatives. Paul Chan stated his hope that through this agreement, both sides will jointly build a seamless, efficient, and trustworthy “golden corridor,” combining Laos’ natural gold resources with Hong Kong’s infrastructure and international connectivity to transform these resources into transparent, investable assets, thereby driving sustainable economic growth in both regions.

During his visit to Laos, Paul Chan also held further discussions with local officials on an agreement to avoid double taxation. He expressed optimism about concluding such an agreement soon, which would bring greater tax certainty for businesses engaging in cross-border economic activities between the two jurisdictions. Additionally, he visited the Lao Gold Bank and the Lao International Precious Metals Refinery to inspect their technical capabilities and facilities.

Source: rfi

Original article: toutiao.com/article/1871312467318787/

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