Sep. 2--HONG KONG -- Hong Kong's first precious metals depository opened Wednesday where precious metals such as gold, silver and platinum can be stored and traded, Financial Secretary John Tsang said.

Financial Secretary John Tsang said the facility "marks an important step forward in strengthening Hong Kong's position as a competitive global financial center." The 340-square-meter depository, located at Hong Kong International Airport on Chek Lap Kok island, will conduct storage and physical settlement activities for the Mercantile Exchange, central banks, commodity exchanges, bullion banks, precious metal refineries and issuers of exchange traded funds.

Tsang said the depository will provide "a convenient and secure storage facility for traders, institutional investors, gold producers and refineries." The Hong Kong Monetary Authority is also planning to transfer its physical gold reserves stored in Britain to the depository later this year, depository director Raymond Lai said.

Marvin Cheung, chairman of the Airport Authority that runs the depository, said in a statement that the airport can best serve as a logistics hub for high-value cargo for its proximity to mainland China.

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