Hong Kong’s main exchange plans to capitalise on what it believes will be demand for commodity risk management coming from China with the launch of metals, agriculture and other commodity derivatives denominated in the renminbi.
China’s influence in commodity markets is growing as the country needs access to financial and commodity derivatives markets to help companies and traders hedge price swings as Chinese demand for underlying commodities continues.
The move by Hong Kong Exchanges & Clearing (HKEx) comes as there is intense interest beyond Asia in the exchange’s plans to expand beyond its core business of initial public offerings, equities and expansion into renminbi-related services.