Debates at LME Asia Week are centred around helping China achieve better influence in global commodity pricing, according to HKEX chief executive.
The debates include topics such as whether pricing should be determined onshore or offshore, and if physical or futures prices were more representative of the market, he told delegates in the opening speech of LME Asia Week on Thursday May 17 in Hong Kong.
Li added that this has been an issue for many years but market participants have had such conversations quietly. However, China cannot wait further as it faces multiple challenges against the backdrop of international trade wars.
“This is the year we don’t have big bang announcements, it’s more of a work in progress,” Li said.
He added that the HKEX and LME are working on resolving LME onshore warehouse issues and better connecting the domestic, international markets, and onshore commodity businesses.
Ultimately, the HKEX will prioritise China’s development, pricing power and standing in international markets.
The HKEX is the parent company of the LME that it acquired in 2012.