The London Metal Exchange (LME), a subsidiary of the Hong Kong Exchanges and Clearing Limited (HKEX), announced today (January 20) that it would include Hong Kong as an approved delivery point within the LME's global warehousing network and to accept applications from warehouse operators to become approved for the storage of LME-registered brands of metals. The Government welcomed the decision.
　　
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "Our country is the world's largest consumer of industrial metals. Developing relevant commodity exchanges will drive the development of a financial, shipping and trade centre. 'The Chief Executive's 2024 Policy Address' announced the creation of a commodity trading ecosystem for attracting relevant enterprises to establish a presence in Hong Kong, turning our city into an operation centre for international commodity trading, storage and delivery, shipping and logistics, risk management, and more. Approving Hong Kong as an LME delivery point will bring efficient and comprehensive services to the global metal markets, leveraging Hong Kong's institutional and legal advantages, and demonstrating our role as a 'super connector' and 'super value-adder' to connect Mainland and international opportunities. This will help consolidate and enhance Hong Kong's position as an international financial, shipping and trade centre."
He added, "The establishment of LME-accredited warehouses in Hong Kong will provide the most convenient, more cost-effective and safer delivery channels for related metals trading in the region. It will also increase the demand for Hong Kong's trade, shipping, warehousing and transportation industries, strengthen Hong Kong's commodities ecosystem, and lay a foundation for future financial-related trading. I look forward to seeing an approved warehouse commencing operations in Hong Kong soon."
The HKEX and the LME will actively communicate with the industry and encourage applications from warehouse operators. The Government will provide assistance as appropriate.
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