The first batch of London Metal Exchange (LME)-certificated warehouses in Hong Kong has officially begun operations, marking a significant milestone in the special administrative region’s commitment to developing a commodity trading ecosystem.
Eight warehouses, including one operated by China Resources Logistics, joined the LME’s global metals trading network on Tuesday. These facilities will provide a more efficient logistics channel, cutting down on delivery time and costs and streamlining commodities trading among international traders, particularly those from the Chinese mainland.
China Resources Logistics said that with the support of partners, including LME-listed warehouse operator GKE Metal Logistics, it has completed the LME warrant registration for copper, nickel, and tin. The company will continue to optimize warehousing and logistics services to support the SAR in becoming a more vibrant international commodities trading center, it added.
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The LME, owned by Hong Kong Exchanges and Clearing Ltd, now has around 450 storage facilities in 33 locations across the world.
Since the beginning of July, nearly 7,000 tons of certificated metals have been stored in Hong Kong warehouses, the exchange said on Wednesday.
“This is a critical step towards Hong Kong’s development as a global metals hub. Hong Kong not only serves the region as a whole, but also provides market participants with access to the Chinese mainland,” the exchange said on social media.
The SAR government has been striving to expand the city’s maritime and trade services, as well as to build a commodity trading ecosystem. In its 2025-26 budget, the government announced plans to introduce a 50 percent profits tax concession for commodity trading businesses.
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Financial Secretary Paul Chan Mo-po said in May that the relevant bill will be tabled before the Legislative Council (LegCo) as soon as possible.
Contact the writer at gabylin@chinadailyhk.com
