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Takeover of LME to help promote yuan trading

Updated: 2012-08-09 08:03
By Oswald Chen in Hong Kong ( China Daily)

The acquisition of the London Metal Exchange will be a breakthrough in further promoting yuan internationalization and tapping the business potential of the mainland commodity derivatives' sector, the Hong Kong Exchanges & Clearing Ltd said.

HKEx, the world's second-largest bourse by market value, successfully bid in June for the LME by agreeing to pay HK$16.67 billion ($2.14 billion) to LME shareholders. The acquisition deal is being reviewed by UK financial regulatory bodies and is expected to be completed by the fourth quarter of 2012.

"The LME acquisition is a catalyst" for further expansion of the offshore yuan market, HKEx Chief Executive Charles Li said on Wednesday at a press conference.

Takeover of LME to help promote yuan trading