appConfigEntityId

bodyType

customContents

entityId

entityUuid

isVideo

articlePageQuery

article

articleSchemaContent

content

hooksArticlePageAdvertisementConfigArticle

hooksArticlePageFloatingButtonConfigArticle

appConfig

filter

json

liveArticle

Aileen Chuang

A Hong Kong commodities market focused on materials critical to clean energy and other emerging industries would elevate the city’s importance in global trade while providing a strategic alternative for economies and companies worldwide, according to a local private think tank.
Such a market would help commodities buyers avoid having all their eggs in one basket in Western markets, the Better Hong Kong Foundation said in a report on Wednesday.
“Developing the commodity market is an important measure to create a new growth point for Hong Kong’s economy,” added the report, which is based on nine months of research with commodity-market participants and the China Development Institute in Shenzhen.
The report came after Chief Executive John Lee Ka-chiu called for Hong Kong to build an international gold and commodity trading ecosystem in last year’s policy address.
A commodities market would consolidate and enhance the city’s status as an international centre in three crucial areas of finance, shipping and trade, the report said. It would also promote the internationalisation of the yuan and support the Belt and Road Initiative, Beijing’s initiative to link economies into a China-centred trading network.
The suggestions and strategies made in the report are based on industry needs, said the foundation, which was established in 1995 by influential Hong Kong business and community leaders.
The market would help Hong Kong “seize the commanding heights” in the development of the new-energy and green industries, according to the report.
Given geopolitical tensions, Hong Kong’s commodities market would become a “strategic choice for different economies and companies to prevent the risks of ‘broken links’ and ‘cut-offs’ in Western markets”, the report said.

“This study distinguishes itself from previous research on similar topics by conducting in-depth surveys with representatives from the commodity industry and financial experts,” said Karen Tang, executive director of the Better Hong Kong Foundation. “It explores strategies and pathways for developing the commodity market in Hong Kong, focusing on industry demand.”
The report recommended that Hong Kong adopt four strategies in its planned commodity market.
First, the city should focus on the minerals and metals used in the carbon transition. The demand for these will increase alongside rapid deployment of clean-energy technology and a global consensus on a greener future.
Secondly, Hong Kong’s commodity market should support emerging industries in the city and the Greater Bay Area, which encompasses Hong Kong, Macau and nine cities in southern Guangdong province. These industries include life and health technology, artificial intelligence and data science, advanced manufacturing, new-energy technology and new-generation electronic information, the report said.
The third strategy recommendation is to focus on the non-ferrous metals and materials needed for the development of manufacturing industries in mainland China and the Belt and Road Initiative, while the fourth is to support trading of the top commodities that China imports and exports, including iron ore, crude oil, coal and rubber.
Based on these strategies, the report listed 20 policy recommendations that would promote the development of a commodity supply-chain ecosystem in the bay area. These include strengthening links with eastern Zhejiang province, Shanghai and other regions, and seeking support from the central government.
The foundation said it supported Hong Kong taking the lead on commodity-trading regulations and standards for green metals, and suggested the creation of a “Commodity Connect” mechanism for trading and settlement.
Such a mechanism, based on the Stock Connect scheme, would link the London Metal Exchange and the Qianhai Mercantile Exchange to connect the mainland and international commodities markets. Both exchanges are units of bourse operator Hong Kong Exchanges and Clearing.
The link would help state-owned enterprises participate in Hong Kong’s commodity trading and contracts, within a certain limit, the report said.
The idea appears to have support in Beijing. Wu Qing, the chairman of the China Securities Regulatory Commission, mentioned at a summit in Hong Kong in November that commodities could join the stocks, bonds, options and wealth-management products covered by the various cross-border trading links.


Hong Kong lacks a climate narrative to unify its efforts

Hisense unit gains in Hong Kong debut amid rush of mainland Chinese corporate spin-offs

Hong Kong stocks eye fresh inflows from mainland China’s insurers sitting on US$6 trillion

What Saudi Arabia’s exit means for China-led mBridge amid global de-dollarisation

Banking & finance

Hong Kong should seize role in clean-energy commodities, think tank says

An aerial photo taken on September 2, 2024 shows the fourth phase of the Chinese-built Mohammed bin Rashid Al Maktoum Solar Park in Dubai, United Arab Emirates. Photo: Xinhua

Excavators transfer coal at a port in Lianyungang, in eastern China’s Jiangsu province, on November 27, 2024. Photo: AFP

Hong Kong’s potential as commodities hub draws expansion by UK’s Marex Group

A collection of 100-gram gold bars sits on a table. Photo: DPA

Marex Group Asia-Pacific CEO Arthur Fan, pictured at his company’s new office in Central on December 5, 2024. Photo: Enoch Yiu

Gold and other commodities markets can drive Hong Kong’s growth, finance chief says

Hong Kong is hoping to become a global gold trading hub to spur economic growth. Photo: Xiaomei Chen

Regulators add voices, support to Hong Kong’s role in connecting China with world markets

(L to R)Eddie Yue, Chief Executive of Hong Kong Monetary Authority; Li Yunze, Minister, National Financial Regulatory and Administration; Wu Qing, Chairman, China Securities Regulatory Commission; Zhu Hexin, Deputy Governor, People’s Bank of China and Administrator, State Administration of Foreign Exchange; at the Global Financial Leaders’ Investment Summit at the Grand Hyatt hotel in Wan Chai on 19 November 2024. Photo: Dickson Lee

Vice-Premier He Lifeng speaks at the Global Financial Leaders’ Investment Summit in Hong Kong on November 19, 2024. Photo: Dickson Lee

China Securities Regulatory Commission (CSRC) Chairman Wu Qing attends Global Financial Leaders’ Investment Summit at the Grand Hyatt hotel in Wan Chai on 19 November 2024. Photo: Dickson Lee

Chinese Vice-Premier He Lifeng spoke in a recorded speech during the 2023 Global Financial Leaders’ Investment Summit in Hong Kong on November 7, 2023. Photo: Reuters.

Financial Secretary Paul Chan delivers a speech at a dinner to welcome the participants on November 18. Photo: HKMA

Eddie Yue, chief executive of the Hong Kong Monetary Authority, at the welcome dinner on November 18. Photo: HKMA

The Global Financial Leaders’ Investment Summit Welcome Dinner kicks off by a performance by the Four Gig Heads Percussion Group, accompanied by a video that celebrates Hong Kong’s cinematic heritage. Photo: HKMA

Business

Commodities

Banking & Finance

China Business

Climate and energy

Markets

Commodities market would ‘create a new growth point for Hong Kong’s economy’, report from Better Hong Kong Foundation says


Commodities market would ‘create a new growth point for Hong Kong’s economy’, report from Better Hong Kong Foundation says.


Hong Kong should seize role in clean-energy commodities, think tank says

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Commodities market would ‘create a new growth point for Hong Kong’s economy’, report from Better Hong Kong Foundation says

Commodities market would ‘create a new growth point for Hong Kong’s economy’, report from Better Hong Kong Foundation says