HKEX rises 5pc as Aguzin says commodities clout growing

Hong Kong Exchanges and Clearing (0388) jumped over 5 percent after chief executive Nicolas Aguzin said that Hong Kong is playing a more important role in the global commodities market.

He made the comments while attending an LME Asia Metals Seminar, his first public event since taking office on Monday.

Although Hong Kong is not a traditional commodity trading or investment hub, its commodity market is gradually developing and playing an increasingly important role in the industry, Aguzin pointed out.

Recently, the bourse became the first overseas institution to invest in a futures exchange in mainland China, which is an important milestone.

Meanwhile, as manufacturing, consumption, and infrastructure has gradually returned to normal, the demand for commodities, especially basic metals, will also pick up, he said.

Chairman of HKEX Laura Cha May-Lung said the exchange will also strive to create more opportunities for mainland enterprises and investors to trade on exchanges, and develop more risk management tools for mainland metal producers and consumers.

The LME will launch four metal contacts to provide pricing and trading channels for metals that support sustainable development this year, including a Lithium hydroxide contract for the electric vehicle industry. E-registration LMEpassport, which records certification materials such as metal sustainability standards to facilitate voluntary disclosure by the industry, will launch in this summer.

HKEX managing director and chief China economist Ba Shu Song said the mainland will increasingly rely on new economic innovation to promote new economic industries to replace traditional industries.

After the pandemic, China's economic growth will rebound significantly, but only in the short term. The economy will grow at an average medium-speed in the long-term, reply on the new economy sector as a driver, he said.

Aguzin added Southeast Asia's new economy is becoming a new driving force for Asia's growth.

HKEX shares closed 5.37 percent higher at HK$474.6 yesterday.