HONG KONG, Aug. 19 (Xinhua) -- By joining the London Metal Exchange (LME) delivery network, Hong Kong has taken a major step toward building a robust commodity trading ecosystem, the city's financial chief said on Tuesday.
Speaking at an unveiling ceremony for the LME delivery warehouse jointly operated by China Resources Logistics and GKE Metal Group, Paul Chan, financial secretary of China's Hong Kong Special Administrative Region (HKSAR) government, said that Hong Kong's inclusion in the LME delivery network plays a vital role in supporting the national development strategy and further strengthening the city's position as an international financial and shipping center.
Chan noted that China is the world's largest manufacturing country, with the most comprehensive range of industrial sectors. The country has a massive demand for non-ferrous metals, abundant metal resources, and leading refining technologies, with production volumes of various metals ranking among the highest globally.
He said that establishing a delivery point in Hong Kong, rather than relying on overseas warehouses, can significantly reduce logistics time and costs, while improving allocation efficiency. This move will also enhance the resilience of regional non-ferrous metal supply chains.
The LME warehouse in Hong Kong can serve as both a "reserve point" and a "stabilizer," playing a regulatory role in ensuring the stable supply of critical metal resources across the region. It will also promote integrated development between Hong Kong's financial and logistics services, Chan added.
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