Hong Kong and Shanghai Unify the Gold Market – The End of the Price of "Papel"?

[Igor Pereira]

Traders, the global financial infrastructure has just suffered a tectonic tremor. What was speculation in 2025 is now fact consummated in 2026.

By Igor Pereira Financial Market Analyst

The news confirms: Hong Kong and Shanghai will sign an agreement to build a cross-border gold clearing system.

This isn't just banking bureaucracy. It is the definitive step to take the discovery of the price of London/New York and bring it to China. Below is the impact analysis of this new Gold Supervia.

O South China Morning Post confirmed that the two cities will sign a memorandum of understanding in 19th Asian Financial Forum Next week.

• The objective: The system will link the two markets, allowing direct compensation of cross-border gold trade.

• The Immediate Benefits: The authorities claim that this will improve the reliability of settlement, cut operational costs and, crucially, increase liquidity.

The most important sentence in this report is: "This is another step in the change of gold from a trading asset to a financial infrastructure".

• ExpertFX Reading: The West sees Gold as a flashing ticker on the screen (XAU/USD). The East sees Gold as cash and settlement base. By creating this infrastructure, China is building an alternative payment system to the Dollar, backed in real physical metal, armored against sanctions.

As mentioned, this validates the thesis that circulated between May and December 2025.

• What Does That Mean: Arbitration between the price of Shanghai (SGE - Physical) and the price of COMEX/LBMA (Papel) used to be difficult to exploit due to capital barriers. With this Hong Kong-Shangai link, the capital flow becomes fluid.

• The Result: If the price in Shanghai rises (due to real physical demand), it will pull the global price with much more force, draining the liquidity from the western paper market.

China is not only buying gold; it is rewriting the rules of how gold is traded and liquidated.

My Vision: The center of gravity of the metal market has permanently moved east.

1. Attention to the Asian Session: Expect more violent and directional movements during the early hours of Brasilia, when these markets are operating the new infrastructure.

2. Bullish for Physical Gold: Facilitating cross-border trade in China means facilitating the absorption of all gold available in the world. That's rocket fuel for the prices.

---

Game Turned: The Arbitration Route

With this new system, an institutional arbitration window opens between Gold Offshore (Hong Kong) and Onshore (Shanghai) There is a specific ETF in Hong Kong that will capture this massive flow of capital before the rest of the world.

Ensure your place in the elite market: "> CLICK HERE TO ACCESS THE PICTURE