Key Takeaways
SF Holding Co., China’s biggest express-delivery firm, is set to open a gold vault in Hong Kong with a capacity of up to 100 tons, a strategic diversification that aims to capture the city's growth as a global precious-metals hub.
The courier plans to open the custodian vault within its complex near the Hong Kong airport in October, according to people familiar with the matter who asked not to be identified as the information is private. The facility will be divided into two sections: one for safe-deposit boxes for high-value assets and another primarily for storing 50 to 100 tons of precious metals.
"This is a shrewd move by SF Holding to build a new, high-margin business on the back of its existing logistics and security expertise," said a Hong Kong-based logistics analyst. "It's a direct play on the government's efforts to bolster the city's status in the global gold market."
The vault is SF Holding’s latest venture into the commodities sector. The firm is a certified logistics provider for the Shanghai Gold Exchange and handles logistics for major jewelry chains and mining companies in mainland China. In Hong Kong, it partners with a London Metal Exchange-approved warehouse for storing base metals. The new vault will see it compete with established players in precious-metals logistics like Brink’s Global Services and Malca-Amit Group of Companies.
This initiative aligns with Hong Kong's ambitious plans to expand its role in the global gold market. The city intends to launch a central clearing system for physical trading, increase its vaulting capacity to 2,000 tons within three years, and encourage central banks to store bullion in its facilities. For SF Holding, the Hong Kong vault could serve as a stepping stone for broader international expansion in the lucrative precious-metals storage market.
This article is for informational purposes only and does not constitute investment advice.
