May 27, 2013 / 11:47 AM / 5 years ago

HKEX eyes China co-listings to boost commodities business-Li

* HKEX looking at mutual listings with China exchanges-Li

* HKEX eyes expansion into agricultural, soft commodities-Li

* Considering removing London presence as prerequisite for membership

SINGAPORE, May 27 (Reuters) - Hong Kong Exchanges and Clearing is considering joint listings of commodities products on mainland Chinese bourses to capitalise on last year’s acquisition of the London Metal Exchange, Chief Executive Charles Li said on Monday.

“This is about developing mutual product listing/licensing arrangements and forming strategic partnerships with leading exchanges,” said Li in a blog post outlining developments for the exchange’s commodities business.

“Mainland China institutions would be key partners for us given the sheer size of the mainland market and the mainland’s need to internationalise. These partnerships would ultimately take us beyond metals and into other commodities,” he added.

HKEX, the world’s No.2 exchange operator by market value, paid $2.2 billion for the LME last year, as it seeks to expand beyond its traditional business in equities trading.

“We would also like to extend eventually to soft commodities and agriculture as opportunity permits,” said Li in the blog.

Li said earlier this year that the exchange will use the LME’s status as the world’s biggest metals marketplace to extend HKEX’s commodity platform into ferrous metals, such as iron ore, coking coal and energy.

One key sticking point in the exchange’s drive to boost Asian membership has been its prequisite for members to have a London presence. The exchange is reviewing this rule, Li said. (Reporting by Melanie Burton, editing by William Hardy)

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