LME, a subsidiary of the Hong Kong Stock Exchange (00388), announced that the first batch of approved Hong Kong storage facilities will be put into operation after three months

The Zhitong Finance App learned that the London Metal Exchange (LME), a subsidiary of the Hong Kong Stock Exchange (00388), announced that it has approved four LME approved warehousing facilities in Hong Kong. The new approved warehousing facility has passed the LME transportation and logistics standards. It is expected to be officially put into operation after three months to begin receiving and storing metals from LME approved delivery brands.

Each of the four storage facilities is operated by three warehouse operators. Local partners include China Resources Logistics, Sinotrans Hong Kong, and Fenghao Supply Chain. The metals approved for storage include aluminum alloy, zinc, zinc and lead.

LME CEO Pauline Cheung said, “After announcing Hong Kong as LME's delivery location, we were able to approve the first batch of storage facilities so quickly, which is an exciting development for LME. We sincerely thank our warehousing companies and partners for their strong support, as well as the metal industry's keen interest in LME's Hong Kong warehousing business.”

“Hong Kong now has sufficient conditions to further develop into a major global metals market, and is also the best gateway for enterprises to enter the mainland China market. This will further reinforce Hong Kong's important position as an international financial, trade and logistics hub.”

HKEx Group Chief Executive Chen Yiting said that the first batch of 4 storage facilities located in Hong Kong was very welcome to be approved as LME's approved storage facilities. China is the world's largest consumer of metals. Hong Kong, China is China's gateway market. With strong support from warehouse operators, warehouse owners and the metal industry, these storage facilities will extend LME's global network to Hong Kong, which will help cultivate Hong Kong's commodity trading ecosystem and promote Hong Kong's development as a commodity trading center in the region.

She added that these warehouses will be a key link between the Chinese spot metals market and LME's international pricing, opening up new opportunities for market participants. The Hong Kong Stock Exchange will continue to work closely with LME and stakeholders to promote the development of the Hong Kong commodities market. It is also expected that more Hong Kong storage facilities will become LME approved storage facilities.

LME approved Hong Kong as the LME delivery location on January 20 this year.