MKS PAMP weighs opening a Hong Kong vault

Following a leading international gold company's decision to set up a refinery

in Hong Kong, another industry leader MKS PAMP is weighing opening a vault

here first, saying the city's gold market will take time to reach critical mass.

Stamped with the image of Lady Fortuna, this gold bar produced by MKS PAMP,

a renowned Swiss gold refiner, guarantees high quality and hence liquidity

for precious metals dealers around the world.

Capitalizing on Hong Kong's drive to forge an international gold trading hub,

this gold giant upgraded its Hong Kong office to its Asia-Pacific headquarters

last year to facilitate gold trade, driving significant business growth.

The company is among the first participants of Hong Kong's gold central clearing

and settlement system trial operation since early July.

In an exclusive interview, its CEO considers the results encouraging.

James Emmett says, " Hong Kong has developed the sort of financial centre capabilities linked to the mainland, very much focused as well on how we now build out that in Asia-Pacific. I think the Renminbi contract will be really interesting, because it's a unique contract. You don't want too many contracts though, because you split apart the trading volumes."

After the upgrade in October last year, the office in Central is now the heart of one of the three global trading hubs of the company, alongside Geneva and New York.

With the central government's support, the international financial centre

plans to seize the golden opportunity to expand

beyond trading into gold refining and vaulting services.

Another major international refiner recently committed

to establishing a plant in the city.

Emmett says the company is considering opening a vault

in Hong Kong first, with a final decision expected in the near term.

Emmett says, "Not just for storage, to create liquidity. That means to create the ability to trade physical gold in Hong Kong. This is very important.

And then potentially in supporting the activities of a refinery."

On whether it means setting up a refinery in Hong Kong or the Greater Bay Area,

he notes that the location remains under evaluation.

Emmett says, "What is most important to us is that the ecosystem is developed. We would look at the different commercial dynamics

of inputs and then where we would sell the output to."

He says the company saw Hong Kong's strong focus

on gold and decided to support the market's evolution.