Xu Zhengyu: Hong Kong and Laos signed three cooperative agreements covering the gold market, mutual fund recognition and Islamic finance
The Zhitong Finance App learned that Hong Kong's Secretary for Financial Services and the Treasury, Mr Hui Ching-yu, visited Laos and Malaysia last week and signed a total of three cooperation agreements within four days, focusing on the three major directions of cross-border regulatory cooperation, Islamic financial integration, and gold market connectivity. The results of the trip were aimed at deepening financial ties between Hong Kong and the Asian market and expanding new space for the development of Hong Kong's financial industry.
Xu Zhengyu signed a memorandum of understanding on gold market cooperation with the Deputy Prime Minister and Minister of Finance of Laos to provide a convenient channel for eligible Laotian gold holders to connect with Hong Kong's approved refining network, encourage the trading and delivery of refined gold bars in Hong Kong that meet international standards, and strengthen talent training and fintech exchanges. Xu Zhengyu also witnessed the signing of a cooperation document between Lao Gold Bank and international precious metals trader MKS PAMP.
Xu Zhengyu pointed out that Hong Kong's central gold clearing and settlement system was tested in early July. The market response was positive, and it is closely linked to the direction of the country's “15th Five-Year Plan” to support Hong Kong's development of a commodity trading ecosystem. Laos is rich in gold resources, and Hong Kong has world-class infrastructure and professional service advantages. Cooperation between the two sides is expected to create an efficient and transparent “golden corridor” to promote Hong Kong's development as a leading gold trading, clearing and storage center in the Asian time zone.
In Kuala Lumpur, Xu Zhengyu led representatives from the Hong Kong Securities Regulatory Commission and the Financial Services Bureau to sign two memorandums of understanding with Malaysian regulators. The Hong Kong Securities Regulatory Commission and the Malaysian Securities Regulatory Commission reached a cooperative framework on mutual recognition of funds and cross-market stock listing; the Finance and Finance Bureau established a strategic partnership with Malaysia to strengthen cross-border cooperation in audit supervision and financial reporting compliance. Bursa Malaysia was confirmed as a stock exchange accredited by the Hong Kong Stock Exchange on the same day, and major companies listed on its main board can apply for a second listing in Hong Kong.
Xu Zhengyu had in-depth exchanges with senior members of the Ministry of Finance and the Central Bank of Malaysia on Islamic finance. Malaysia is the world's leading market for Islamic finance. The two sides have broad scope for cooperation in Islamic bond issuance, investor base expansion, product innovation and regulatory experience exchange. In terms of family offices, Hui Ching-yu said that the number of single family offices in Hong Kong continues to grow, and as tax relief measures are further optimized, Hong Kong's appeal as a global family office hub will continue to increase.
Xu Zhengyu said that in the context of increasing uncertainty in the global economy, Hong Kong needs to deepen ties with the Asian market through practical cooperation. Whether it is building a “golden corridor” with Laos or promoting mutual regulatory recognition and Islamic financial cooperation with Malaysia, they all reflect Hong Kong's direction of expanding the financial industry “high, broad and deep”. It is hoped that relevant cooperation will soon be transformed into concrete results to help Hong Kong integrate into the overall national development agenda.