LME’s Owner Seeks Commodities Trade Link to Mainland China

(Bloomberg) by Jasmine Ng and Rishaad Salamat – Hong Kong Exchanges & Clearing Ltd. is in the early stage of creating a commodities trading connection with mainland China. HKEx, owner of the London Metal Exchange, the world’s biggest metals bourse, aims to make international benchmark commodity futures available to traders in China while offering mainland contracts to overseas traders, Chief Executive Officer Charles Li said Wednesday. The country opened its stock market to foreign investors through the Shanghai-Hong Kong exchange link in November and authorities are planning a similar equity link between Hong Kong and Shenzhen later this year. “We are trying to see whether we can connect the international product to domestic liquidity and the domestic product to international liquidity,” Li said in an interview with Bloomberg. “We are very confident that ultimately, hopefully in the not too distant future, we will be able to announce a certain level of connectivities on the commodity side.”  The exchange is seeking to tap into rising raw materials trading volumes in China, the world’s top consumer of energy, metals and grains. HKEx started yuan-denominated, cash-settled copper, aluminum and zinc contracts in December to attract investors that trade similar futures on the Shanghai Futures … continue reading

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