Source: Hong Kong Mercantile Exchange
Industrial and Commercial Bank of China (Asia) Limited ("ICBC (Asia)") has become a founding shareholder in the Hong Kong Mercantile Exchange ("HKMEx"). ICBC (Asia) acquired a 10% equity interest in HKMEx and agreed to participate extensively in the Exchange's operations as a Trading Member, Clearing Member and Settlement Bank.
ICBC (Asia) joins China Ocean Shipping (Group) Company, operator of China's largest shipping container line, as a keystone investor in the Hong Kong Mercantile Exchange.
ICBC (Asia) Managing Director and Chief Executive Officer Chen Aiping said the investment is a strategic development for ICBC (Asia). "At this stage in the growth of ICBC (Asia), such an investment is an appropriate step as we are specialized in providing cross-border financial services for the Mainland and Hong Kong while China is a very important importer and trader of commodities," he said.
As a Trading Member, ICBC (Asia) will trade on the Exchange on its own behalf and on behalf of clients. The bank's Clearing Membership will enable it to offer clearing services for HKMEx trades.
"We're delighted to have ICBC (Asia) as a founding shareholder. Being the largest bank in the world in terms of market capitalization, ICBC Group's participation will contribute to building the bridge between the international and Chinese trading communities," said Barry Cheung, Chairman of the Hong Kong Mercantile Exchange. "Going forward, we expect to develop a range of synergistic opportunities between ICBC (Asia) and HKMEx."