The Hong Kong Mercantile Exchange (HKMEx), China’s global marketplace, today signed a memorandum of understanding (MOU) with Maike Metals International Limited, one of the largest base metals traders in China, to promote China’s base metals trading sector to international market participants.
The MOU was signed today by Jane Wang, Co-President of HKMEx, and He Jinbi, President of Maike Metals, at a ceremony in Hong Kong. Under its terms, Maike will be named an HKMEx Industry Associate. The Xian-based base metals trader will assist HKMEx in promoting its upcoming renminbi-denominated copper futures contract as an Exchange strategic partner.
Maike Metals also agrees to utilize HKMEx’s RMB copper futures in hedging its physical export, import and entrepot trading activities. HKMEx and Maike Metals will also co-develop a copper price benchmark for use by the industry in the Asian trading time zone, and cooperate on the development of futures contracts in other base metals. The two parties will develop an effective hedging and price platform whereby physical delivery of HKMEx’s copper and other base metals contracts can be conducted via bonded warehouses in mainland China.
“Maike Metals is excited to forge this strategic partnership with HKMEx. We look forward to jointly building a base metals trading platform reflecting the needs of the industry both in China and across Asia, as well as being freely accessible by international market participants and operating to international market conventions. This partnership will further reinforce our continued international expansion to become a global force in base metals trading,” said Maike Metal’s Mr He.
HKMEx Chairman Barry Cheung said, “With the signing of this MOU today, HKMEx takes yet another major step in its development. We welcome Maike Metals as our newest Industry Associate, and look forward to cooperating with them closely in contributing to the continued development of base metals trading in China, beginning with the development of a copper price benchmark for the Asian time zone.”
Headquartered in Xian and with business operations in over 20 major cities across China, Maike Metals is one of the largest non-ferrous metals traders in China with annual volume reaching two million tons. The company is a leading copper trader in China. Maike Metals is also engaged in asset management in the metals market through a joint venture formed with HFZ Capital Management Limited.
HKMEx offers a 32 troy ounces (1 kilo) gold futures contract and a 1,000 troy ounces silver futures contract. Both are denominated in US dollars with physical delivery in Hong Kong. Going forward, the Exchange plans to launch gold and copper contracts denominated in renminbi, followed by other products in precious and base metals, as well as energy, agriculture, and commodity indices.
