Eight London Metal Exchange-licensed (LME) warehouse facilities in Hong Kong are up and running with 8,000 tons of LME-approved branded metals in storage, marking a significant step for Hong Kong in establishing an ecosystem for commodity trading, said Hong Kong Financial Secretary Paul Chan Mo-po on Tuesday.

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Speaking at the unveiling ceremony of a LME-approved warehouse in the western part of Kowloon by the China Resources Logistics and LME-listed warehouse operator GKE Metal Logistics, Chan noted that Hong Kong serves as the southern gateway of the country and boasts a world-class, efficient, and accessible logistics system.

Establishing a delivery point in Hong Kong, which is close to one of the world’s largest metal consumption and export markets, will undoubtedly reduce logistics time and costs compared to relying on overseas warehouses, thereby improving allocation efficiency, he added.

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In January, the SAR became a part of the LME’s global warehouse network. Since CR Logistics’ warehouse started operation last month, it has seen robust demand and high levels of incoming metal shipments, according to the company.