HOTLINE: Proud owner of LME grapples with new market

The commodities futures market can be difficult to understand, even for the head of Hong Kong Exchanges & Clearing.

At LME Week Asia in Hong Kong this month, Charles Li told journalists he sometimes struggled to understand the world of commodities.
“If you feel that somehow there are things you don’t understand nearly as well, absolutely don’t feel bad, because I am the ceo of Hong Kong Exchange and the proud owner of LME and I don’t understand many, many, many issues almost everyday,” he told journalists before a media workshop organised by the London Metal Exchange.
Commodities are a new and different topic for Hong Kong, where most people – including the journalists attending the workshop – have been more exposed to the world of equities.
“Many of us who grew up and practiced or trade largely in equities usually find commodities very difficult to understand,” he said, adding that he has had to ask Lesley Campbell, the LME’s vp marketing and education Asia, to explain things to him three or four times, and still has not totally understood it even then.
We've got to hand it to the candid Li for explaining the difference between commodities and equities in simple and succinct terms, though. He also defined the importance of the LME for hedging and the need for physical delivery and warehousing.
Seems the ceo understands what matters most.


July 05, 2013

11:55 GMT