Switzerland’s MKS PAMP, one of the world’s largest refiners and traders of precious metals, has joined a growing number of European companies that are expanding operations in Hong Kong, drawn by the city’s strengthened focus on its financial services and commodity trading sectors.
The Geneva-based firm – locally known for minting the centenary gold bars for Bank of China (Hong Kong) in 2017 – on Thursday opened its 3,600 sq ft regional headquarters at the St John’s Building on Garden Road in Admiralty, a move that is expected to bolster the city’s role as an international gold trading hub.
“We decided to create a regional head office in Hong Kong because our clients wanted us to be making decisions in their time zone,” CEO James Emmett told the Post in an interview. “They wanted us to show the ability to move quickly here.”
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“We see long-term demand for precious metals being very strong in Asia. Structurally, it continues to increase,” he added.
The Swiss firm’s customers include banks, governments, watch and jewellery manufacturers, retailers and other precious metal refiners.
The Hong Kong headquarters will serve as the company’s regional hub, overseeing a comprehensive suite of precious metals trading and financial services. Other core functions include regional sales and client relationship management, treasury operations and overall operational support for the Asia-Pacific region.
An image of the Bank of China Tower, designed by renowned architect I.M. Pei, is shown engraved on one of the commemorative gold bars minted by Swiss firm MKS PAMP for the 100th anniversary of the Bank of China (Hong Kong) in 2017. Photo: SCMP alt=An image of the Bank of China Tower, designed by renowned architect I.M. Pei, is shown engraved on one of the commemorative gold bars minted by Swiss firm MKS PAMP for the 100th anniversary of the Bank of China (Hong Kong) in 2017. Photo: SCMP>
Previously, MKS PAMP served its Asian clients from its Geneva headquarters. The opening hours of Asian markets are ahead of trading sessions in Europe.
The Swiss company’s expansion, along with similar initiatives by other European firms, reflected confidence in the city’s economic growth after a few turbulent years, which included the Covid-19 pandemic.
In 2022, the total number of foreign companies operating in Hong Kong fell below 9,000 for the first time since 2019, according to government data. A 2022 survey by the European Chamber of Commerce in Hong Kong found that nearly half of its 260 member companies considered either a full or partial relocation of offices relocating their offices within a 12-month period.
MKS PAMP sees Hong Kong as a gold trading centre, according to CEO Emmett. “Making Hong Kong an international gold trading hub was a deciding factor” to setting up an office in the city, he said.
“Hong Kong is not only a vital link to the Chinese mainland’s gold market, but also its position at the nexus of Asia-Pacific’s precious metals market,” he said. “We see great opportunities with the Chinese mainland as well as the rest of the Asia-Pacific.”
Its expansion in Hong Kong comes as other European firms have set up offices in the city. Paris-based private equity firm Ardian recently opened a new 4,000 sq ft office at Two International Finance Centre in Central – the firm’s fifth location in Asia – as it looks to expand its US$3 billion in regional investments within its US$200 billion in assets under management.
Meanwhile, London-headquartered fintech company 3S Money said it plans to launch its new office in the city in January.
St John’s Building on Garden Road in Admiralty, where MKS PAMP set up its Hong Kong headquarters. Photo: Google alt=St John’s Building on Garden Road in Admiralty, where MKS PAMP set up its Hong Kong headquarters. Photo: Google>
On Hong Kong’s advantages, MKS PAMP’s Emmett said the city provided not only trading and skilled talent, but also logistics, security and storage infrastructure – “all of which are very important for precious metals”.
In addition, he said: “Clear commercial law further strengthens Hong Kong’s ecosystem.”
MKS PAMP was also exploring the possibility of developing manufacturing or refining capabilities in the Greater Bay Area, which would complement its existing refinery in Switzerland.
That consideration comes as gold prices hit record highs this year, fuelled by historically strong central bank purchases, investor inflows and a weaker US dollar.
“Asian people are buying more physical gold and want to hold it,” Emmett said.
According to its website, MKS PAMP served as a reference price member for the Shanghai Gold Benchmark Price Trading – a centralised pricing process for the precious metal.
The momentum in gold is expected to continue, driven by “solid” demand from central banks, according to Alexandra Symeonidi, corporate credit analyst on William Blair’s emerging markets debt team. She added, however, that investor appetite remained uncertain amid ongoing market volatility.
This year, Hong Kong’s push to become a global gold trading hub has gathered pace in spite of ongoing geopolitical tensions.
In 2022, MKS PAMP became the first in its industry to launch a portfolio of precious metal products which have had their carbon footprint independently verified. Photo: Handout alt=In 2022, MKS PAMP became the first in its industry to launch a portfolio of precious metal products which have had their carbon footprint independently verified. Photo: Handout>
In June, the Shanghai Gold Exchange opened its first offshore physical gold delivery vault in the city, and the government has committed to building gold storage capacity exceeding 2,000 tonnes within three years, up from around 150 tonnes in late 2024.
Hong Kong is also planning to boost gold refining and set up a central clearing system, according to Chief Executive John Lee Ka-chiu’s policy address in September
For private equity firm Ardian, being close to clients in Hong Kong was a major reason for setting up a new office in the city, according to Jason Yao, the company’s head of Greater China. He said the firm sees Hong Kong as a natural base to further grow its secondary private equity business in Asia.
Ardian has about 50 long-standing clients in the Greater China region. Several major insurance companies had already committed to the firm’s various products, Yao said.
Meanwhile, 3S Money is building a seven-member team in Hong Kong – across sales, know-your-customer capabilities and anti-money-laundering functions – to provide personalised financial services. Founded in 2018, the firm operates six global offices worldwide, including in London, Amsterdam, Luxembourg, Riga and Dubai.
