Shanghai: Meishan Port Bonded Area, which is controlled by Ningbo Port, is in negotiations with London Metal Exchange (LME) to be listed as a delivery point. The move is expected to end the government ban on foreign exchanges setting up shop in mainland China.
The LME, which has registered warehouses worldwide, has tried for many years to set up storage facilities in mainland China. The Hong Kong Exchange has said it plans to support the LME to expand its warehouse network in China.
An official from investment cooperation bureau of the Meishan government revealed they have started talks with the LME to discuss the possibility of a warehouse.
"I believe Shanghai, Dalian and other bonded ports might also want to become approved LME warehouses because it can raise their profile," the official added.
Currently National Development and Reform Commission (NDRC) and the nonferrous metals association are conducting a feasibility study for the first time on allowing the LME to set up warehouses on the mainland. [12/11/12]