The London Metal Exchange (LME) that is owned by Hong Kong Exchanges and Clearing (HKEX) is about to introduce yuan-denominated metal products to signify the currency has gained momentum in the international finance, reported South China Morning Post. Matthew Chamberlain, the CEO of London Metal Exchange said in an interview in Hong Kong: “At present, investors are trading our products in US dollars. We would definitely like to explore the possibility of launching products denominated in offshore renminbi.”

HKEX permits traders to use yuan as collateral. With rise in the use of the currency, Chamberlain is positive that yuan-denominated products will be well-accepted.

“Chinese investors are definitely very active customers at the LME. They are trading through mainland brokers who are members of the LME or western firms.”

“We believe with the increasing number of Chinese trading in our market, there would be more Chinese companies wishing to join the LME.”

Gary Cheung, chairman of the Hong Kong Securities Association, said: “Allowing Chinese manufacturers and investors to trade in yuan instead of the US dollar would reduce their currency risk. If the LME wants to attract more Chinese investors to its market, it makes perfect sense for it to launch the yuan metal contracts.”