Financial Secretary Paul Chan on Thursday said the SAR government plans to set up a panel under the International Organisation for Mediation (IOMed) to settle disputes in the commodities market.

The remarks came as he delivered a speech at the London Metal Exchange (LME) Asia Metals Seminar in Central, an annual conference for the metals industry.

Speaking at the seminar, Chan noted the planned panel would offer a "neutral, export-led" mediation mechanism, settling disputes arising across the commodities value chain, covering mining and production, trading and clearing, as well as warehousing and delivery.

"This initiative complements our strategy to develop Hong Kong into a leading gold and commodities trading hub and helps facilitate cross-border transactions, mitigate risks and strengthen market confidence among global market participants," he told participants.

"Looking ahead, the prospect for Hong Kong's metal business is highly promising."

His remarks also came as the city's exports in non-ferrous metals rose by 35 percent year on year in 2025, against the backdrop of global trade uncertainties.

Such momentum also continued in the first quarter of this year, with shipments of such metals rocketing some 170 percent, amid fresh supply chain disruptions caused by the conflict in the Middle East.

"Our ambition is for Hong Kong to be a place where every major financial need of a commodity business can be satisfied: from commodity-backed finance and derivatives, to marine and trade insurance, as well as sustainability-linked instruments," he said.

Separately, the finance chief noted the city welcomed more metals and minerals companies to set up shop in the SAR and raise funds, citing the example of a mining firm that operates Kazakhstan's largest tungsten mine.

The firm, Jiaxin International Resources, conducted a concurrent listing on both Hong Kong's stock exchange and the Kazakh stock exchange in August last year.

Chan also noted the city aims to introduce legislation in the first half of the year to offer a 50 percent profits tax concession for eligible commodity trading activities.

Also speaking at the event was Bonnie Chan, chief executive of Hong Kong Exchanges and Clearing (HKEX), who noted the city now has 15 LME-approved warehouses in Hong Kong, storing some 24,000 tonnes of copper, tin and zinc.

"That is an important milestone in establishing physical market connectivity, and it is especially heartening as I recall that at the same event last year, I approved the approval of the first batch of only four warehouses," she said.

"And we will be exploring how to give investors broader access to the commodities market with an ecosystem of products such as futures and RMB-denominated products."


Edited by Tony Sabine