Hong Kong exchange to launch RMB-denominated metals futures

Hong Kong Exchanges and Clearing (0388.HKG) confirmed it will offer one-month RMB-denominated futures contracts next week for aluminum, copper and zinc, The Wall Street Journal reported. The new contracts are dubbed “minis” since they will represent five tons of metal instead of the standard 25 tons, and will be priced in Chinese yuan using the prices for each metal on the London Metal Exchange, which Hong Kong’s exchange bought in 2012. The two exchanges estimate Chinese investors account for 20-25% of volumes traded on the LME, whereas China accounts for more than 40% of global demand for base metals.