Date
18 December 2017
HKEx's Charles Li has suggested that cross-border trading initiatives should be extended to commodities products. Photo: Bloomberg
HKEx's Charles Li has suggested that cross-border trading initiatives should be extended to commodities products. Photo: Bloomberg

The Big Picture: COMMODITIES THROUGH-TRAIN?

After equity products, the next initiatives in cross-border trading could be in the commodities sector as authorities seek to boost linkages between mainland and overseas bourses.

Charles Li, chief executive of Hong Kong Exchanges and Clearing Ltd. (HKEx, 00388.HK), said the local commodities market can adopt the model of the “through train” cross-border stock trading program to help develop the sector.

The Hong Kong-Shanghai bourse linkage provides a good model for direct share trading across the border as it does not require any changes in the system, clearing procedures and trading habits, RTHK quoted Li as saying.

If products on the London Metal Exchange (LME) and those in the mainland can be traded in the same manner, such a program will help internationalize the mainland market, he said.

Li said the LME is holding discussions with mainland authorities for the exchange to set up warehouses in the mainland.

Meanwhile, Financial Secretary John Tsang said Hong Kong can learn from the LME to quicken the development of Hong Kong’s commodities market.

The LME is an important international commodities exchange platform that will help Hong Kong become an asset management hub, Tsang said.

– Contact HKEJ at [email protected]

JH/JP/CG

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