Hong Kong warehouses get LME approval as exchange eyes China metal trade
The London Metal Exchange (LME) has approved four warehouse facilities in Hong Kong, extending its global network to the doorstep of mainland China, the world's largest consumer of metals.
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The new facilities would be able to begin storing seven of the 14 LME-approved metals within three months, the exchange said in a statement on Tuesday.
'Hong Kong is now well-positioned to further develop as a key global metals hub servicing the region and as a gateway for access to the mainland China market, reinforcing Hong Kong's vital role as an international financial, trade and logistics centre,' said LME CEO Matthew Chamberlain.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said the decision would further promote the development of Hong Kong's commodity market and strengthen its role as an international financial, shipping, and trading centre.
LME-approved warehouses in Hong Kong would offer efficient delivery channels for metals trading, attracting related businesses and boosting the city's role in global commodities and logistics, he added.
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The announcement followed LME's January decision to add Hong Kong to its global warehouse network, aiming to meet growing demand for the physical exchange of metals between mainland China and the rest of the world.
The LME has more than 450 authorised warehouses across 33 locations worldwide. The exchange has been eyeing China as a warehouse location since 2012, when it was acquired by Hong Kong Exchanges and Clearing (HKEX) for US$2.2 billion.
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