LONDON — A breakthrough in the opening of China’s 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 mainland’s 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 said.

Li plans to use the London Metal Exchange as a catalyst for HKEx’s 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 benchmark.

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 Bulletin.