Hong Kong, 10 November 2025 – The Financial Services Development Council (FSDC) today released a research report titled “Unveiling Hong Kong's Potential: Prospective Growth in the Expanding Commodity Market”.

As a leading international financial centre, Hong Kong consistently ranks among the top three global financial hubs, serving as a beacon for global trade and finance. Building on the strengths of its fundraising, risk management, and investment capabilities, expanding its commodity market offerings will further strengthen the city’s economic resilience and solidify its position as an international financial centre in an increasingly complex and interconnected world. This strategic move aligns with the Government’s endeavours to bolster the commodity ecosystem, particularly in gold trading.

Commodity markets are generally divided into physical trading and futures trading. While a thriving futures market does not always require a strong physical market, the latter can significantly enhance futures market activity by anchoring demand from end users. Therefore, Hong Kong should prioritise strengthening its physical commodity trading before venturing into commodity futures trading. This strategic focus would gradually stimulate demand for related derivative products and cultivate a more vibrant commodity futures market.

To enhance Hong Kong's position in the global commodities markets, it is critical to prioritise commodities that align with the region’s strengths and objectives. With a robust foundation in gold trading and capitalising on the Chinese Mainland’s strong demand for iron ore, copper, and aluminium, these commodities offer strong growth potential. The ongoing global energy transformation is generating unprecedented demand for sustainable energy sources, alongside the opportunities presented by the Belt and Road Initiative, which signifies extensive prospects for commodity trading.

“There is an evolving global demand for strategic commodities, as manufacturers worldwide are diversifying their operations to mitigate risks and establish stable supply chains amidst a volatile environment. Against this background, Hong Kong’s reputation as a neutral, trusted and strategic trading hub becomes increasingly more appealing,” said Benjamin Hung, Chairman of the FSDC. “As Chinese Mainland accelerates its efforts to open and broaden its commodity market, Hong Kong has a pivotal role to play in this transformative journey.”

This study identified the key elements for a vibrant physical commodity market, demand trends for various commodities, and challenges faced by cross-border traders. The FSDC believes the Hong Kong Stock Exchange is in an ideal position to drive further development of the sector, and, accordingly, we set forth some ideas to (i) strengthen Hong Kong’s commodity market ecosystem; (ii) prioritise key commodities from key markets; and (iii) enhance the connectivity of the commodity markets between the Chinese Mainland and Hong Kong.

The policy recommendations put forth in the paper focus on market development, product selection, and infrastructure improvement to support the growth of a vibrant and sustainable commodity market. We believe these recommendations will enhance market efficiency, invigorate trading activities, and enrich product offerings, laying a solid foundation for a vibrant and efficient commodity market in Hong Kong.

The full version of the report can be downloaded from the FSDC website: www.fsdc.org.hk.