Secretary for Financial Services and the Treasury Christopher Hui Ching-yu delivers a speech at a gong-strike ceremony to mark the inaugural insurance-linked securities listing at the Hong Kong Exchanges and Clearing Ltd on March 28, 2023. (PHOTO / HKSAR GOVERNMENT)
HONG KONG – The new energy vehicle industry in the Chinese mainland is developing rapidly, indicating that key metals such as nickel, lithium, cobalt and manganese have great development potential, a principal official of the Hong Kong Special Administrative Region government said Tuesday.
Christopher Hui Ching-yu, secretary for Financial Services and the Treasury of the HKSAR government, said that as the world strives to reduce greenhouse emissions, there will be a natural energy transition towards renewables and electric vehicles (EVs).
“Notably, industry research indicated one fourth of the cars sold in our country were EVs, and its sales were expected to reach over 8 million this year. And yes, these low-carbon technologies rely on a handful of key metals like nickel, lithium, cobalt and manganese which may be of little-use to date,” Hui said at the London Metal Exchange (LME) Asia Metals Seminar 2023.
Laura Cha Shih May-lung, chairperson of the Hong Kong Exchanges and Clearing Limited (HKEX), noted in her video speech that the mainland economy is leading the next stage of growth in Asia
“And surely, such opportunity is one that LME will never give a miss. LME suite of metals is fundamental to the EV evolution, and key battery metals are already trading on its platform.”
He noted that LME has been offering new contracts such as LME Cobalt and Lithium Hydroxide CIF in recent years to help producers, consumers and investors for price discovery and hedging.
“Also, following the successful launch of LMEpassport in 2021, it is exciting to learn that this digital credential register has continued to gain traction in terms of users, sustainability metrics and standards disclosed,” Hui said.
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“Just last month, over half of LME brands listed had voluntarily input a range of ESG credentials and value-added information related to sustainability, further propelling the development of EV batteries. I am sure another very enlightening panel discussion will feed you all with more insights on the interplay between carbon agenda and metals markets,” he added.
Hui said the post-COVID recovery in the mainland is now on track with an uptick in consumer spending, which could be reflected by an impressive 4.5 per cent growth in Gross Domestic Product (GDP) in the first quarter.
Laura Cha Shih May-lung, chairperson of the Hong Kong Exchanges and Clearing Limited (HKEX), noted in her video speech that the mainland economy is leading the next stage of growth in Asia.
With the steady recovery of the economy, the development of manufacturing and infrastructure will push ahead with the demand for basic metals, she said.
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HKEX Chief Executive Officer Nicolas Aguzin said that the volume of new contracts on the London Metal Exchange increased significantly in 2022, and new products and services will continue to be developed in the future.