LME WEEK-LME owner HKEX eyes more yuan-denominated commodities contracts

LONDON< Oct 19 (Reuters) - Hong Kong Exchanges and Clearing Ltd 0388.HK, owner of the London Metal Exchange, is looking at rolling out more yuan-denominated contracts to give investors more access to the Asian commodities market, its CEO said on Monday.

The LME will next week start trading a hot-rolled steel coil contract that gives international participants exposure to a yuan price benchmark in China, the world's biggest steel producer, although the contract will be settled in dollars.

HKEX, meanwhile, plans to announce details of a new yuan-denominated gold futures contract towards the end of this year.

"We are ... exploring how to give global investors broader access to Asia's commodities market with an ecosystem of products in Hong Kong, such as futures and RMB-denominated products," HKEX CEO Bonnie Chan said, referring to the Chinese currency.

The aim is to build a "comprehensive commodities ecosystem" connecting global markets to Asia, helping to drive liquidity, she added in a speech at the start of the LME Week industry gathering in London.

"The demand is there, the room for growth is there, and the ability is there. And the LME, with its expertise, time-tested institutional strengths, and commitment to continuous improvement, will play an important role in the development of that ecosystem," Chan said.

LME member Sucden Financial earlier this month called for brokerages to be allowed to execute trades in offshore yuan on the exchange.