Exchange Fund weighs bigger gold holdings to support Hong Kong’s trading hub plan

A larger allocation to precious metals could improve diversification and align with the city’s gold hub strategy, says HKMA’s Eddie Yue Hong Kong’s Exchange Fund, the war chest used to defend the local currency, is considering increasing its exposure to gold and other precious metals as part of the government’s push to develop the city into a gold trading hub. Yue said the Exchange Fund could increase its allocation to gold, which currently accounted for only a small portion of its portfolio, but he did not disclose the scale or timing of any potential purchases.

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