UPDATE 1-HKEx set to raise profile in commodities space

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HONG KONG Jan 19 (Reuters) - Hong Kong Exchanges and Clearing Ltd (HKEx), among the world's largest bourse operators, said on Thursday it planned to ramp up spending to upgrade infrastructure in the commodities space and confirmed its commitment to deeper ties with its mainland peers.

HKEx said capital expenditure this year would be about HK$2 billion ($257.70 million), although it later clarified that this would be spread over a number of years, expanding into areas like commodities and fixed income.

"We are coming to a moment when China will become so international, but are frustrated that they cannot manage the commodities sector on their terms," HKEx Chief Executive Charles Li told a media briefing in Hong Kong.

"If we can tap into this, we can grow into it."

He reiterated plans to set up a joint venture with the Shanghai and Shenzhen bourses this year for trading futures products with underlyling assets in mainland China.

HKEx said in August that it was in talks with peers in Shanghai and Shenzhen on a joint venture for equity derivatives and index compilations, a move that would represent the first concrete link between the three exchanges focused on China's vast economy.

China's IPO market last year, worth 286 billion yuan ($45.31 billion), was the biggest in the world. Hong Kong's IPO market raised 220.7 billion yuan during the same period, while the U.S. market was worth 224.3 billion yuan, according to accounting firm PricewaterhouseCoopers.

($1 = 7.7611 Hong Kong dollars) ($1 = 6.3120 Chinese yuan) (Reporting by Victoria Bi and Kelvin Soh; Editing by Anne Marie Roantree and Jonathan Hopfner)