The London Metal Exchange approved its first four licensed warehouses in Hong Kong on Tuesday in a bid to turn the city into an international metals trading hub.
The subsidiary of Hong Kong Exchanges and Clearing (0388) approved the city as an LME delivery point in January.
The LME said it had approved two warehouses operated by GKE Metal Logistics, and one each for Henry Diaper & Company and PGS East Asia.
Specifically, GKE Metal Logistics’ local partner is China Resources Logistics (Yuen Fat Wharf & Godown)
Henry Diaper & Co’s local partner is Sinotrans (HK) Warehousing. State-backed Sinotrans (0598) is the unified operation platform and brand of China Merchants Group's logistics business.
PGS East Asia has SF Supply Chain (Hong Kong) as the local partner.
Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said that the approval will further promote the development of Hong Kong's commodity market and strengthen the city’s position as an international financial, shipping and trading center.
The 2024 policy address highlighted the establishment of a commodity trading ecosystem as a new growth point to consolidate and enhance Hong Kong's status as an international financial center, he added.
LME chief executive Matthew Chamberlain said Hong Kong is well-positioned to further develop as a main global metals hub, and act as a gateway for access to the mainland China market.
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