Hong Kong Bourse to Build Commodity Spot Trading Platform in Shenzhen

SHANGHAI, Jun. 15 (SMM) – Hong Kong Exchanges and Clearing (HKEx) will build its first commodity spot trading platform in Shenzhen, Shanghai Metals Market reports at 2016 LME Week Asia in Hong Kong. 

“The platform aims to establish a healthy commodity trading platform that serves the real economy,” Charles Li, HKEx Chief Executive, spoke to reporters at the fourth annual LME Week Asia in Hong Kong.  

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The lack of free capital flow, overcapacity and high financing costs are main barriers to the development of Chinese commodity market, Li explained, and the bourse can collect data for reference price discovery, and then develop hedging and derivatives tools in the future.  

At present, participants in China’s commodities market are largely retail investors and financial speculators, and the new Qianhai trading platform will set up a model, with producers, consumers and traders being main players, similar to the LME, Li added.  

The platform will be registered in Shenzhen’s Qianhai special economic zone, and is expected to launch in the first half of next year. 

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