SFST welcomes LME's approval of three additional approved warehouses
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, today (September 22) welcomed the approval by the London Metal Exchange (LME), a wholly-owned subsidiary of the Hong Kong Exchanges and Clearing Limited (HKEX), of the applications to designate three warehouses in Yuen Long as approved warehouses. This decision demonstrates the strong industry support for the policy direction to promote commodity trading as announced in "The Chief Executive's 2025 Policy Address", further enhancing Hong Kong's commodity trading ecosystem and consolidating its status as an international financial, shipping and trading centre.
Mr Hui said, "The Chief Executive raised in his 2025 Policy Address to continuously develop Hong Kong's commodity trading ecosystem, including support for the sector in setting up more approved warehouses. Relevant government bureaux and departments have been maintaining close communication with industry stakeholders and providing appropriate assistance on technical matters. The expansion of the LME's storage facilities in Hong Kong is a positive response to the policy direction set out in the Policy Address. In less than nine months since Hong Kong's inclusion in the LME's global warehousing network, the total number of LME-approved warehouses has now increased to 11, including the eight previously approved. This strengthens Hong Kong's advantage in infrastructure and reinforces our position as a key LME delivery hub in Asia. The three new warehouses are ready for immediate operation, providing efficient delivery options to market participants in international metal trading, while also driving the development of Hong Kong's shipping and related services."
He added, "The Policy Address also proposed other measures to develop commodity trading, including the establishment of the Strategic Committee on Commodities led by the Financial Secretary; deepening of the HKEX's connections with the Guangzhou Futures Exchange and other commodity markets on the Mainland; and the Government's plan to amend legislation in the first half of next year to provide half-rate tax concessions for commodity traders to set up businesses in Hong Kong. These initiatives aim to co-ordinate efforts in both hardware and software in order to lay an overall framework for long-term development. The Government will actively collaborate with the trade to expedite the implementation of these measures."
The LME included Hong Kong as an approved delivery point within its global warehousing network in January this year, and began accepting applications from warehouse operators to become approved warehouses of LME-registered brands of metals.
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