Hong Kong’s “unparalleled advantages” buttress its unique position to harness the global metal industry’s growth momentum, while it serves as a central platform for the sector’s development despite geo-economic dynamics, the city’s finance chief said Wednesday.

Financial Secretary Paul Chan Mo-po made the remarks at the LME Asia Metals Seminar 2025, which brought together members of the global metals trading and investor communities to discuss key issues affecting the sector.

“We offer unparalleled expertise and deep liquidity to support metals trading and investment activities,” Chan said, adding that the city plans to roll out more policy initiatives, including a 50 percent profits tax concession for eligible commodity trading activities.

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Chan highlighted the strong growth momentum in the global trade of non-ferrous metals, adding that the overall trading volumes at the London Metal Exchange increased 20 percent year-on-year to reach 178 million lots last year.

“China remains a pivotal force in this landscape, both as a leading producer and consumer of non-ferrous metals. In 2024, our country's trade in non-ferrous metals exceeded US$368 billion, a growth of 11 percent,” he said.

And under the "one country, two systems" principle, the special administrative region is the only place in the world that enjoys the unique dual advantages of being part of China, while maintaining an open and globally connected economy that operates with the best international standards.

“We are a free port, with zero import tariffs and unrestricted movement of goods, capital and information. Our customs clearance regime is efficient, connectivity to the Greater Bay Area and the broader mainland and Asian markets is seamless, and the logistics and maritime network is world-class,” Chan said.

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The city’s common law tradition, along with its ecosystem of top-notch financial and professional services, also provide a trusted platform and deep liquidity to support metals trading and dispute resolution, he added.

Last year, Hong Kong Chief Executive John Lee Ka-chiu outlined in his Policy Address a plan to create a commodity trading ecosystem in the city, in light of the vast potential in the metals trade.

Chan said this ecosystem will catalyze growth across related sectors, such as testing and certification, insurance, financial and maritime services, as well as warehousing and distribution.

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“And on warehousing, I'm delighted to note that since January, Hong Kong has officially joined the LME's global warehouse network, bringing storage facilities closer than ever to the industrial heartlands and consumption centers on the Chinese mainland,” he said.

“The progress is impressive: Within just a few months, seven warehouses have already been approved, with operations commencing as early as July.”