SINGAPORE The Hong Kong Mercantile Exchange (HKMEx) has added China International Futures Hong Kong Co. Ltd. (Cifco HK) as a broker member, making it the first international exchange to have signed up all six mainland Chinese futures firms allowed to conduct business in Hong Kong.
The other mainland futures brokerages on HKMEx are China Xin Yongan Futures Co. Ltd., GF Futures (Hong Kong) Ltd., Green Futures (Hong Kong) Ltd., Jinrui Futures (Hong Kong) Ltd. and Nanhua Futures (Hong Kong) Co. Ltd.
"Having all six mainland Chinese futures companies on board will significantly boost our exchanges market leadership as the bridge between Chinas fast-growing commodity markets and other international trading hubs," HKMEx chairman Barry Cheung said in a statement Wednesday. "It will also, no doubt, contribute to the success of our upcoming (yuan-denominated) copper and gold futures products."
Cifco HK is the Hong Kong branch of China International Futures Co., one of the largest futures brokerages in China by trading volume and turnover.
Cifco HK chairman Michael Zhang called the move "a continuation of our strategy to leverage on our well-established brand and extensive industry experience in mainland China to expand abroad and to offer the most comprehensive range of both internationally and domestically traded investment products to our customers."
HKMEx currently offers a 32-troy-ounce gold futures contract and a 1,000-troy-ounce silver futures contract denominated in U.S. dollars, with physical delivery in Hong Kong.
The exchange, which has 31 broker members, has plans to launch gold and copper contracts denominated in yuan, followed by other precious and base metal products, as well as energy, agriculture and commodity indices.