HKEx planning mainland commodities trading platfrom

HKEx CEO Charles Li XiaojiaHong Kong’s Futures and Securities Exchange HKEx is planning to launch a commodities trading platform in mainland China, its chief executive Charles Li Xiaojia announced last week. The platform would most likely be located at Shenzhen, an hour’s drive from Hong Kong. The mainland commodity futures market was dominated by financial players who were not the end users but who traded commodities futures like financial futures and settled by cash only, he explained, which meant that it was characterised by high daily turnovers and low open interest positions due to a lack of end users taking a longer-term view.
“Specifically, we are exploring the establishment of a spot commodity trading on the mainland supported by warehousing and a financial platform,” he said.

Source: scmp