Hong Kong Exchanges and Clearing said developing cross-border index and equity derivative products with mainland exchanges will attract mainland investors and boost the city's market turnover, which lags those of Shenzhen and Shanghai. The Hong Kong market's daily average turnover makes up 60 to 70 per cent of total market capital, against 150 to 160 per cent in Shanghai and up to 400 per cent in Shenzhen. The rate indicates how active a market is, although a very high reading may imply speculative activity. '[The mainland] stock market does not have margin financing or high-frequency transactions and yet they can achieve such a high turnover rate. I hope a structural integration with them can help boost our turnover rate in long-term development,' said HKEx's chief executive Charles Li Xiaojia. HKEx said in August it was talking to its counterparts in Shenzhen and Shanghai about setting up a joint venture to develop index or equity derivative products. While no further details were disclosed in the past three months, Li said yesterday a plan would emerge in the near future. The Hong Kong exchange has been seeking to reach out to other bourses, and last month formed an alliance with six from the so-called BRIC economies - Brazil, Russia, India and mainland China - to cross-list each other's benchmark index derivatives from June next year. Li said Hong Kong should consider setting up a commodity trading platform in yuan in the longer term. Despite being the world's biggest consumer and manufacturer of commodities, China lacks pricing power. Alex Wong Kwok-ying, a director of asset management at Ample Capital Group, however, said it was not easy for latecomers to create a new platform. 'The first mover has a tremendous advantage in the commodity market. Traders form a cluster and stay put. Besides, limitations in the flow of yuan will also hinder such developments,' Wong said. While Li said the real internationalisation of the yuan would take a long time, he expected the mainland to relax capital controls in the next five years.