Garry Jones, LME
During the pilot programme, which will run for a period of one year, Henry Bath will issue receipts on the LMEshield system. Receipts will initially be issued for bonded warehouses in Shanghai, with the intention of expanding to other Chinese locations. The LME has selected Henry Bath as its pilot partner.
The deployment in the PRC is based on the existing LMEshield system, allowing commodities owners and lending banks to hold and finance Chinese commodity receipts as part of their global LMEshield portfolio. The LME is developing a specific set of terms and conditions to reflect the needs of the Chinese market. As with all LMEshield jurisdictions, the LME has received a Chinese legal opinion confirming the efficacy of the LMEshield system for commodities in the PRC.
Garry Jones, CEO of the LME said: "This deal is sponsored by Henry Bath, with support from its shareholder CMST as a key state-owned warehousing operator, whose local knowledge and regulatory engagement can give confidence to the market as to the use of LMEshield in the PRC."
In parallel with the pilot programme, the LME will work with other warehouse companies - alongside relevant Chinese regulatory authorities - to ensure that, at the expiry of the pilot programme, they will also be in a position to issue LMEshield receipts in the PRC. The LME will initiate a project, with all interested warehouses signed up to the LMEshield system on 31 December 2016, to facilitate such approvals.