Hong Kong’s gold exchange will introduce the largest ever reforms in its 91-year history to capitalise on the opening of the Chinese mainland market after its entry into the World Trade Organisation (WTO).

President of the Chinese Gold & Silver Exchange Society Fung Chi-kin said the reforms would include extended trading hours, the introduction of an electronic trading system and the launch of a new, high purity gold product in autumn.

Mr Fung said the reforms would encourage international investors to trade in Hong Kong. “The gold exchange in Hong Kong needs to increase its trading volume, attracting international investors to use Hong Kong as a hub to expand into the China gold market. We want to make sure our product, trading hours and trading system are in line with international standards.”

The gold exchange plans to change the closing time from 4:30pm to 2:30am to match gold markets in London and New York. An electronic trading system is needed to cope with the extended hours.

Mr Fung expects Hong Kong’s gold imports to rise after China’s WTO accession, when its ban on freely traded gold imports will be lifted. With the upgrade of the exchange, he expects the average trading volume to increase from HK$400 million (US$51.4 million) per day to HK$2.5 billion (US$321 million). Last year, a total of 128 tonnes of gold were imported to Hong Kong.