The London Metal Exchange has approved its first four licensed warehouse facilities in Hong Kong as it seeks to boost access to mainland China, it said on Tuesday.
The LME, the world’s oldest and largest market for industrial metals, approved Hong Kong as a warehouse delivery point in January.
Approving warehouses in China, the world’s biggest metals consumer, to store LME traded metal has been a strategic goal since Hong Kong Exchanges and Clearing bought the LME in 2012.
The LME said it had approved two warehouses run by GKE Metal Logistics, and one each for Henry Diaper & Co and PGS East Asia.
“Hong Kong is now well-positioned to further develop as a key global metals hub servicing the region, and as a gateway for access to the mainland China market,” CEO Matthew Chamberlain said.
The new Hong Kong depots will be able to start storing metals on July 15, joining the LME’s existing network of 32 locations.
(Reporting by Eric Onstad; Editing by Andrew Heavens and David Evans)
