CME Group (CME) has held discussions with Hong Kong authorities to include the city in its physical delivery network for aluminum contracts, Bloomberg reported Wednesday, citing people familiar with the matter.

The talks follow last month's approval for rival London Metal Exchange to establish warehousing space in Hong Kong, capping nearly a decade of efforts to build a Chinese delivery network.

CME's rules allow for open-air warehousing, which could help lower storage costs in a city known for limited space and high expenses, according to the news outlet.

A CME spokesperson declined to comment, the report added.

CME didn't immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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