Nanhua Futures launched a United Kingdom subsidiary to connect Chinese metal companies with the London Market. Nanhua was reported to submit applications as a member of the world's oldest metals trading market.
Nanhua's membership to the London Metals Exchange will guarantee that Chinese metals products and user's trade with their international counterparts. The London Metal Exchange was established 141 years ago.
According to Luo Xufeng, president of Nanhua Futures, the establishment of the Nanhua Financial UK is a big step towards the global market for the company. He added that London is one of the most significant financial centers throughout the entire world and its metals exchange is the largest non-ferrous metal exchange in the world. He added that Nanhua Financial UK will mature by working closely with the London Metals Exchange.
The launch of the Nanhua subsidiary in the United Kingdom was welcomed by London Metal Exchange's Matthew Chamberlain. He noted that the Chinese broker established an important bridge between the London exchange and China's large metals market.
It was reported that other Chinese financial enterprises also started their expansion in the United Kingdom market. It was reported that the Bank of China International is the first Chinese company in the London Metal Exchange and its membership was followed by other Chinese companies like the China Merchants Securities, ICBC Standard Bank, GF Financial Markets, and CCBI Metdist.
China is reportedly pushing to gain more global pricing power for metals that will secure more growth for the Chinese companies. China, according to records, consumes around 40 percent of the supply of metals in the world but the country also has less influence over international metal trading prices. Chinese companies are directly trading metals to their international counterparts and not on commodity exchanges.
The Chinese metal market started to rely on brokers on international exchanges to secure better product price. The new trend attracted brokers like Nanhua to establish in exchange markets including UK operations.
According to Alan Mao of Shanghai Haicheng Resources, they are looking into opportunities to trade through the Chinese brokers like Nanhua because it is easier to communicate with them. However, they will go to a broker that can secure the best price for them.
Nanhua Futures started its operations in 1996 in Hangzhou and it is already actively participating in China's major domestic exchanges that include the Shanghai Futures Exchange, the Zhengzhou Commodity Exchange, and the Dalian Commodity Exchange.
