The Shanghai Futures Exchange (ShFE) is looking to expand its commodities warehousing network outside China, and is examining systems and regulations in the sector overseas, according to three sources with direct knowledge of the matter, reports Reuters. China’s dominant commodities bourse has a domestic network of 216 storage facilities for futures contracts, including metals traded on its market, plus other materials such as rubber.
“ShFE has the intention to expand into overseas warehousing. They are working out what they want to do, how they want to do it and when they want to do it,” one of the sources said.
Ramping up its global presence in metals warehousing would put the ShFE in direct competition with the London Metal Exchange (LME), which dominates the industry outside China, potentially challenging London’s position as the centre of global metals pricing.