Airport Authority Hong Kong (AAHK) said it is finalising the expansion plan of the HKIA Precious Metals Depository at Hong Kong International Airport (HKIA) to support the Government's initiative to develop world-class gold storage facilities and establish Hong Kong as an international gold trading centre.

Since 2009, AAHK has operated the Precious Metals Depository to facilitate physical bullion trading and settlement activities.

AAHK said the depository, which has a capacity of 150 tonnes, has been providing secure storage and physical settlement services to central banks, commodity exchanges, bullion banks, precious metal refineries and issuers of exchange-traded funds (ETFs), among others.

"AAHK is finalising the future development plan of the depository as it is reaching full capacity amid fast-growing market demand," the airport authority said in a statement.

It added that the expansion will be implemented in phases.

With the initial increase of capacity to 200 tonnes at its existing facility, the vaulting capacity will be subsequently expanded by multiple times up to 1,000 tonnes, with room for further development.

AAHK noted that it will work closely with the Government and market stakeholders on utilising this new facility for the best interest of the economy.

"We welcome and fully support measures put forward in the Chief Executive's Policy Address to establish Hong Kong as an international gold trading centre," said Vivian Cheung, acting chief executive officer of AAHK.

"In the past few years, the demand from investors for gold storage, trading and delivery in Hong Kong has grown significantly."

"With its secure location at one of the busiest aviation hubs in the world, the HKIA Precious Metals Depository has been and will continue to be an ideal facility for investors from all around the world," Cheung added.