Bank vault with gold bars. Stock image.
SF Holding Co., China’s biggest express delivery firm, is set to open a gold vault in Hong Kong to tap demand for storage as the city pushes forward with plans to become a precious metals hub.
The courier is planning to open the custodian vault within its complex near the airport in October, said people familiar with the matter. One section will comprise safe-deposit boxes for high-value assets, while the other will mainly be for precious metals, with a capacity of 50 to 100 tons, they said, asking not to be named as they’re not authorized to speak to the media.
SF did not respond to an emailed request for comment.
Hong Kong is promoting itself as a trading, financing and storage hub for gold. It plans to launch a central clearing system for physical trading this year, expand vaulting capacity to 2,000 tons within three years, and encourage central banks to store bullion in the city. The Hong Kong exchange is also planning to relaunch bullion futures.
SF sees opportunities to tap a storage market that has been growing, thanks to demand from wealthy individuals and to government support, the people said. Hong Kong could also be a stepping stone toward broader expansion, they added.
The vault will not be SF’s first foray into commodities. The courier firm is a Shanghai Gold Exchange-certified logistics provider and a courier for large jewelry chains and mining companies in mainland China. In Hong Kong, it is the local partner of one of the first warehouses approved by the London Metal Exchange last year to store base metals like copper.
SF is not yet a member of the London Bullion Market Association, a credential required by some dealers and banks when choosing logistics partners.
The precious metals logistics sector is dominated by a small group of companies, including Brink’s Global Services, Malca-Amit Group of Companies and Loomis AB.
(By Yihui Xie and Julian Luk)