The 5-tonne contracts for copper, aluminium and zinc launched on Monday are the first part of HKEx’s strategy to develop a commodities complex that allows mutual trading between Hong Kong and mainland China.
This follows a similar model to the mutual market access programme for Shanghai and Hong Kong equities launched recently.
Trading volumes for minis have, as expected, been modest at first. Total tonnes traded reached 21,960 tonnes in the first four days.
"This is not going to be a massive contract even in the most optimistic forecast," Li told Metal Bulletin in an exclusive interview. "But it is a necessary contract in order for us to reach the next and bigger game – the converging of the two liquidities [onshore and offshore]”.
The idea in commodities is roughly the same as it is in equities: to provide a platform that opens up Chinese exchanges to direct international...