HKEX mulls metals trading platform in southern China

Shanghai

HONG Kong Exchanges & Clearing Ltd, which bought the London Metal Exchange in 2012 for US$2.2 billion, plans to start a metals trading platform in the first half of next year in southern China as it bids to secure a foothold in the world's biggest consumer and producer of raw materials.

Grappling with a slide in volumes after a fee increase and shrinking profits from commodities, the bourse aims to provide a marketplace for physical metals that will eventually generate benchmark prices in China. Futures in the country have traditionally been dominated by day-trading speculators and the HKEX model is specifically targeted at physical users, producers and traders.