Three Chinese brokerage firms — Yongan Futures, Orient Futures, and Guotai Junan Futures — are preparing to seek membership on the London Metal Exchange, according to sources with knowledge of the situation. The move would significantly increase China’s influence on the globe’s largest trading venue for industrial metals.
The effort is driven by a desire among Chinese firms to claim a bigger piece of revenue generated by metals derivatives trading and to advance their broader goals of international expansion.
Currently, only six of the exchange’s more than 40 clearing members — companies responsible for clearing and settling trades — are Chinese. This leaves the world’s top consumer of metals with a relatively small footprint at the exchange.
According to one source, Guotai Junan Futures has already begun the formal application process for LME membership. Orient Futures is also planning to apply, though two sources said the timeline for that move remains uncertain.
Yongan Futures, which is headquartered in Hangzhou, is working on its own application following the establishment of a UK-based entity last year. Four sources, who spoke on condition of anonymity because the plans have not been made public, confirmed this development.
All three brokerages are major participants on China’s primary metals exchange, the Shanghai Futures Exchange, and each has built subsidiary operations in Singapore over the past decade.
Yongan’s British operation, known as Yongan International Financial (UK), recently brought on Zhang Wei to lead the unit and steer the firm through the LME membership approval process, the sources said. Corporate registration records show Zhang was named as a director in April.
Prior to joining Yongan, Zhang worked in London for GF Financial Markets, an existing Chinese LME member, as well as for China Merchants Securities, which gave up its LME membership in early 2021 after holding it for six years. Zhang could not be reached for comment, and Yongan did not respond to a request for a statement. Orient Futures and Guotai Junan Futures also did not reply to requests for comment.
Earlier this month, Yongan stated on an interactive investor platform that it is seeking a regulatory licence from Britain’s Financial Conduct Authority and working to build a strong base for lawful operations across UK and European markets. Two sources said obtaining that licence would be a stepping stone toward applying for LME membership, although Yongan made no direct reference to the exchange in its statement.
In its own words, Yongan said: “In the future, leveraging the advantages of London as an international financial centre and collaborating with resources in Hong Kong and Singapore, we aim to become a leading cross-border integrated financial services provider.”
The LME, which is owned by Hong Kong Exchanges and Clearing, recorded a record-breaking 183.3 million futures contracts traded last year — a 7.7% increase from 2024. However, most of that activity has been processed through non-Chinese clearing members, which earn fees on every transaction.
CLSA UK, a firm owned by China’s CITIC Securities, received LME membership approval last month and is set to begin trading on Monday.
An LME spokesperson commented on China’s role in the global metals market, saying: “As the world’s largest industrial metals producer and consumer, China is fundamental to the global metals market and represents significant activity in the LME market.” The spokesperson declined to address any pending membership applications.
