Hong Kong's LME-approved warehouses build physical market connectivity, Bonnie Chan says

Hong Kong's London Metal Exchange (LME)-approved warehouses are an important milestone in establishing physical market connectivity, as the number has increased from four last year to 15, and is now nearing saturation, said Bonnie Chan Yi-ting, chief executive of the Hong Kong Exchanges and Clearing (0388).

Speaking at the LME Asia Metals Seminar 2026, Chan noted that the strong performance of Hong Kong's capital markets and the LME's non-ferrous metals market is partly due to geopolitical uncertainties, which have prompted global investors to move away from their past habit of high geographic concentration and instead seek diversified allocations, thereby channeling funds to Asia and Hong Kong, which have significant growth potential.

She said that the LME is committed to continuous improvement, with its new trading platform attracting new members, noting that CLSA UK recently became an official member. 

In addition, Chan said the LME will launch electronic options later this year and has introduced collateral services, including offshore yuan. The company is in consultations to optimize physical market infrastructure and advance its pricing plan for sustainable metal premiums.

Chan also announced that the HKEX has appointed Frank Zhang Ming as managing director and head of commodities, where he will assist in formulating long-term strategies for the regional commodities business, with the goal of building a comprehensive commodities ecosystem in Asia.
 

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