Policy Address

Promote Commodity Trading

111. We will continue to follow the direction set out in the last Policy Address to foster the development of a commodity trading ecosystem in Hong Kong. Relevant measures include:

  1. Support the sector in setting up more approved warehouses, having obtained the approval of the London Metal Exchange, a wholly-owned subsidiary of the HKEX, on the establishment of eight delivery warehouses in Hong Kong.

  2. Provide half-rate tax concessions for commodity traders to set up businesses in Hong Kong, driving demand for shipping and professional maritime services. Legislative amendments will be made in the first half of next year.

  3. Enhance the process of international commodity trading through financial innovation, including testing the use of technologies like electronic bills of lading and tokenised deposit in a collaboration between the HKMA and Banco Central do Brazil to facilitate trade.

  4. Deepen connections with the Guangzhou Futures Exchange and other commodity markets in the Mainland, contributing to the internationalisation of our country's commodity market.

112. The Government will set up the Strategic Committee on Commodities, led by the Financial Secretary. It will bring together industry representatives with the aim of strengthening the top-down design and long-term strategy of our commodity policy.