Exclusive | Hong Kong’s potential as commodities hub draws expansion by UK’s Marex Group

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The establishment of London Metal Exchange warehouses in Hong Kong will be a key enabler, Marex CEO says

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A collection of 100-gram gold bars sits on a table. Photo: DPA

Enoch Yiu

Published: 7:30am, 16 Dec 2024

British financial firm Marex Group has big plans for expansion in Hong Kong in coming years, as it believes the city has the potential to be a commodity hub in Asia, according to a senior executive.

The London-headquartered firm, which conducts trading and clearing for global clients to trade energy, commodities and financial products in 60 exchanges worldwide, has just moved to a bigger office in Hong Kong earlier this month, said Asia-Pacific CEO Arthur Fan.

“Hong Kong has the conditions to be a commodities trading hub in Asia, which is why the city is a strategic hub for Marex,” he said in an exclusive interview. “We believe Hong Kong has significant potential for growth for various business lines in the coming years.”

Marex’s office opening comes as Hong Kong is expanding its commodities trading and storage capacities. Hong Kong’s Airport Authority in October unveiled plans to expand the capacity of its gold vault to 1,000 tonnes from 150 tonnes after Chief Executive John Lee Ka-chiu said in his policy address that bullion storage facilities would be enhanced to bring gold trading up to international levels.

London Metal Exchange (LME) is also exploring a plan to authorise third-party operators to add metals warehouses in Hong Kong.

Fan believes these efforts will be a game-changer for Hong Kong’s role in commodities trading due to its proximity to China.

Marex Group Asia-Pacific CEO Arthur Fan, pictured at his company’s new office in Central on December 5, 2024. Photo: Enoch Yiu