Gov't welcomes LME approval of first warehouses

The application involves four warehouse facilities.

The Hong Kong government has welcomed the London Metal Exchange’s (LME) approval of the first three applications to set up recognised metal warehouses in the city.

The application involves four warehouse facilities and follows LME’s decision in January to list Hong Kong as an approved delivery point in its global warehousing network.

Financial Secretary Christopher Hui said the swift approval signals progress in building a local commodity trading ecosystem.

“The establishment of LME-approved warehouses in Hong Kong will provide convenient, cost-effective and safe delivery channels for metals trading in the region," he said.

Hui added that it will attract relevant enterprises to set up in Hong Kong and transform the city into a hub for international commodity trading, storage and delivery, shipping and logistics, and risk management.

More warehouse operators are currently seeking LME approval. The government said it will continue to assist with technical matters and industry coordination.