LONDON A breakthrough in
the opening of Chinas capital account is likely to be
seen first in commodities markets, Hong Kong Exchanges &
Clearing Ltd. (HKEx) chief executive officer Charles Li
said Jan. 15 at a briefing in Hong Kong.
"As the mainlands growth
continues to evolve, we expect (its) needs to shift
increasingly from capital formation to investment
diversification and risk management. ... We view commodities as
the asset class most likely to see a breakthrough," he
Li plans to use the London Metal
Exchange as a catalyst for HKExs growth in China.
As part of a three-year
strategic plan unveiled Tuesday, HKEx plans full
commercialization of the LME starting in mid-2015. Later this
year, it will also explore partnerships with mainland commodity
exchanges, prepare infrastructure for Hong Kong-based commodity
trading and clearing, and establish an Asia time zone
HKEx will start to "enhance
cooperation in warehouse and cross-border trading facilitation"
in early 2014, and extend "further along the value chain" with
over-the-counter clearing and trade repository services in
commodities derivatives, it said.
A version of this article was first
published by AMM sister publication Metal