July 21, 2016
HONG KONG (AFP) - A planned link between commodities markets in London and Hong Kong has been put on hold because of the "uncertainty" caused by Britain's vote to leave the European Union, the head of Hong Kong's stock exchange said.
Charles Li, chief executive of Hong Kong Exchanges and Clearing (HKEx), wrote in a blog post that before the plan can be taken any further there must be more clarity over the outcome of regulatory talks between Europe and Britain following the shock vote.
"With Britain withdrawing from the EU, there is some uncertainty about the policy developments in the UK. Therefore, we will wait and monitor the development of the UK and Europe's regulatory policy before making further plans to connect the commodities markets in London and Hong Kong," Li wrote late Wednesday.
The "London-Hong Kong Connect" policy was announced during a visit by Chinese President Xi Jinping to Britain last year in a bid to open up the London Metals Exchange to flush Hong Kong investors.
The LME, founded in 1877, is the world's largest exchange trading nonferrous metals and was bought by the HKEx for 1.39 billion pounds ($2.26 billion) in 2012. They still operate as separate bodies.
Li said that other initiatives, such as building a new commodities trading platform in the southern Chinese city of Shenzhen, is "still on track".