The London Metal Exchange (LME) is considering listing Hong Kong as a delivery point, according to Secretary for Financial Services and the Treasury Christopher Hui. Hui mentioned that the LME has shown interest in establishing a warehouse in the city and is currently exploring the practicality of this endeavor. The process of assessing the legal environment in Hong Kong and meeting the necessary criteria to be recognized as a delivery point by LME is underway.
Hui emphasized that the first step for LME is to navigate through the evaluation process before other warehouse companies can decide to set up their facilities in Hong Kong. The government has been actively engaging in discussions with LME and providing support through InvestHK to ensure a seamless process for the organization.
Financial Secretary Paul Chan noted that existing warehouses in Hong Kong could potentially be utilized as delivery points if they meet the requirements, eliminating the need for constructing new facilities. The collaboration between LME and Hong Kong Exchanges and Clearing highlights the city’s significance as a hub for industrial metal trading, particularly in the non-ferrous metal futures sector.
Chief Executive John Lee highlighted in his recent Policy Address the government’s commitment to leveraging opportunities to establish infrastructure for the storage and delivery of commodities. This strategic move aligns with Hong Kong’s positioning as a key player in the global marketplace for industrial metals.
As Hong Kong continues to solidify its role in the trading and logistics sector, the potential listing of the city as a delivery point by LME signifies a significant development that could further enhance its standing in the industry. With a focus on creating a conducive environment for businesses to thrive, the government’s support and collaboration with key players like LME are instrumental in driving economic growth and diversification in Hong Kong’s financial landscape.
