London-Hong Kong Connect announced by President Xi Jinping

Yesterday (October 21), President Xi Jinping and British Prime Minister David Cameron jointly announced in London a number of co-operation initiatives. These include the signing of a memorandum of understanding by the Hong Kong Futures Exchange Limited (HKFE), HKFE Clearing Corporation Limited (HKCC), London Metal Exchange (LME) and LME Clear Limited (LME Clear) for the proposed development of a trading link between the HKFE and LME, and a clearing link between the HKCC and LME Clear (London-Hong Kong Connect) to connect the bulk commodities markets of the two places.

The LME has been wholly owned by Hong Kong Exchanges and Clearing Limited since its takeover by the latter in 2012. The proposed London-Hong Kong Connect fully highlights Hong Kong's combined advantages of "one country" and "two systems" and its role as a "super-connector" between the country and the rest of the world. I believe that Hong Kong, with its links to global financial markets and its strength as an international financial centre, will make due contributions to the development of the country.

October 22, 2015