The London Metal Exchange (LME), a subsidiary of HKEX, has approved three new warehouses in Hong Kong, expanding its Asian delivery hub to 11 sites.
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, on September 22, welcomed the LME’s approval of three warehouses in Yuen Long as LME-approved warehouses. The LME is a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX).
The addition brings the total number of LME-approved warehouses in Hong Kong to 11. The three new warehouses are ready for immediate operation. They will provide market participants with efficient delivery options and create new opportunities for shipping and related services in Hong Kong.
Policy Measures Support Long-Term Growth
Mr Hui said the expansion reflects strong industry support for the policy direction to promote commodity trading as announced in “The Chief Executive’s 2025 Policy Address”, which aims to further develop Hong Kong’s commodity trading ecosystem.
He noted that government bureaux and departments have been working closely with industry stakeholders to provide technical support. The increase in LME storage capacity strengthens Hong Kong’s infrastructure and reinforces its role as a key delivery hub for the LME in Asia.
The Policy Address also proposed several measures. These include the establishment of a Strategic Committee on Commodities, chaired by the Financial Secretary. They also include closer links between HKEX and the Guangzhou Futures Exchange. In addition, the Government plans legislative amendments next year to grant half-rate tax concessions for commodity traders. Together, these steps will help build the framework for the long-term growth of Hong Kong’s commodities market.
In January 2025, the LME added Hong Kong as an approved delivery point in its global warehousing network. It also began accepting applications from operators to store LME-registered brands of metals.
Additional reporting by info.gov.hk, CNS.
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