HKEX sets up new subsidiary in Dubai to expand its commodities business.

On October 13th, HKEX announced the establishment of a new subsidiary, Commodity Pricing and Analysis Limited (CPAL), in the United Arab Emirates. On the same day, HKEX's wholly-owned subsidiary, LME, announced the launch of a pricing scheme for sustainable metal premiums under its approved brand, along with a discussion paper on its proposed pricing methods. CPAL will be responsible for managing the pricing process of sustainable metal premiums. CPAL will primarily operate pricing management services in the commodity market and provide independent quotations and market analysis for the metal market, including promoting the sustainable metal premium business announced by the London Metal Exchange (LME) in April of this year. The HKEX Group will continue to expand its commodity business in this important strategic region through its newly established subsidiary, facilitating interconnections between the rapidly growing markets of China and the Middle East. Dubai has gradually developed into a major hub for commodity trading globally, with the UAE ranking second in the world in the commodity trading index last year, second only to the United States. The index evaluates the influence of major global trading centers in international trade based on indicators such as commodity wealth, logistics infrastructure, and institutional strength. Additionally, in the latest Global Financial Centers Index, Dubai ranked first in the Middle East and Africa and 11th globally. Charles Li, CEO of HKEX Group, stated that the establishment of the subsidiary CPAL in Dubai is an important milestone for HKEX Group to continue expanding its global business. As the influence of the Middle East in the commodity market continues to grow, establishing a presence in the region will allow them to provide better services to stakeholders worldwide, including trusted pricing mechanisms and market analysis, and to promote the development of sustainable metal markets. Through this development strategy, the London Metal Exchange will continue to fulfill its long-term commitment to actively expanding the group's global commodity business and establish stronger business relationships in the Middle East.