On October 13, Hong Kong Exchange and Clearing Limited (HKEX) announced the establishment of a new subsidiary, Commodity Pricing and Analysis Limited (CPAL), in the United Arab Emirates. On the same day, LME, a wholly-owned subsidiary of HKEX, announced that it will launch a pricing scheme for sustainable metal premiums for its approved brands, while publishing a discussion paper on its proposed pricing methodology. CPAL will be responsible for managing the pricing process for sustainable metal premiums.

CPAL will primarily operate pricing management services for commodity markets and provide independent quotes and market analysis for metal markets, including advancing the sustainable metal premium business that the London Metal Exchange (LME) announced in April this year. Through the newly established subsidiary, HKEX Group will continue to expand its commodity business in this important strategic region, promoting connectivity between the rapidly growing markets of China and the Middle East.

Dubai has gradually developed into a major global commodity trading hub in recent years, with the UAE ranking second globally in the commodity trade index last year, only behind the United States. The index assesses the influence of major global trading centers in international trade based on indicators such as commodity wealth, logistics infrastructure, and institutional strength. Additionally, in the latest Global Financial Centres Index, Dubai ranks first in the Middle East and Africa, and 11th globally.

HKEX Group Chief Executive Officer Nicolas Aguzin stated that establishing the subsidiary CPAL in Dubai represents an important milestone in HKEX Group's continued expansion of its global business. As the Middle East region's influence in commodity markets continues to grow, establishing a presence in the region enables them to provide better services to stakeholders everywhere, including trusted pricing mechanisms and market analysis, while promoting the development of sustainable metal markets. Through this development strategy, the London Metal Exchange will continue to shoulder the long-term commitment to actively expand the group's global commodity business and build deeper business relationships within the Middle East region.