Xu Zhengyu: London Metal Exchange approves three new accredited warehouses, Hong Kong's commodity trading ecosystem is becoming more complete.

On September 22, the Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, announced that the London Metal Exchange has approved the application to designate three warehouses in Yuen Long as approved warehouses by its wholly-owned subsidiary, Hong Kong Exchanges and Clearing Limited. This decision signifies strong support from the industry for the direction of commodity trading policy outlined in the Chief Executive's Policy Address for 2025, which will help enhance the commodity trading ecosystem in Hong Kong and solidify its position as an international financial, shipping, and trading center. Hui stated that Hong Kong was included in the global warehouse network of the London Metal Exchange less than nine months ago. With the addition of these three warehouses, alongside the eight warehouses already approved, the total number of recognized warehouses in Hong Kong by the London Metal Exchange has increased to 11. This will make Hong Kong more competitive in terms of infrastructure and help establish it as an important delivery hub for the London Metal Exchange in Asia. The three new warehouses can start operations immediately, providing efficient delivery options for participants in international metal trading and driving the development of Hong Kong's shipping and other related services. He further mentioned that the Policy Address proposed other measures to develop commodity trading, including establishing a Commodity Strategy Committee led by the Financial Secretary, deepening connectivity with the Guangzhou Futures Exchange and other commodity markets on the mainland, and amending legislation in the first half of next year to provide half-tax concession for commodity traders establishing businesses in Hong Kong. The government aims to coordinate both hardware and software aspects to lay a solid foundation for long-term development. The government will actively collaborate with the industry to implement these measures as soon as possible. In January of this year, the London Metal Exchange designated Hong Kong as a licensed delivery point within its global warehouse network and began accepting applications from warehouse operators to store metals under the London Metal Exchange brand.