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China’s private sector
EconomyChina Economy

Chinese firms look to strike gold in a volatile global metals market

Futures brokerages and exchanges aim to grow their market footprint and offer more efficient hedging tools in the global commodity market

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Traders, brokers and clerks gesture on the trading floor of the open outcry pit, also known as The Ring, at the London Metal Exchange Ltd (LME), on March 11, 2025. Photo: AFP
Emma Main Shanghai

Chinese futures brokerages and exchanges are ramping up their global expansion push as the country’s miners and manufacturers look to grow their footprint in the global commodity market amid geopolitical tensions and the rising importance of critical metals.

The go-global drive reflects growing demand by Chinese companies for more efficient hedging tools to avert risks arising from high volatility in global metal prices.

In the first quarter of this year, Chinese mining and metal companies completed cross-border merger and acquisition (M&A) deals worth US$6.17 billion, a more than 10-fold jump from the same period in 2025, according to international consultancy EY.

The overseas acquisition deals accounted for nearly half of the country’s total M&A value during the same period, the consultancy’s data showed.

The largest transaction of the first quarter was sealed by Zijin Mining, China’s largest in the sector, which acquired Canada’s Allied Gold for 28 billion yuan (US$4.12 billion). The North American miner holds 533 tonnes of global gold reserves.
“From a national security perspective, gold and copper stand out as the most vital reserve asset and industrial metal,” wrote Huang Zhuoran of Hong Kong-based China Construction Bank (Asia) in the April edition of Trade Finance magazine. “Over recent years, major global powers have placed greater emphasis on strategic resource security and resilient supply chains.
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