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Qianhai Mercantile Exchange (QME), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), in collaboration with Brasil Bolsa Balcão S.A.(B3), and the Authority of Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone of Shenzhen (QHA) marked a new chapter in the burgeoning soybean trade cooperation between China and Brazil with a well-attended seminar in São Paulo, Brazil on 2 September 2024.

The seminar, themed “Unleash the Brazil-China Soybean Trading Synergy,” aimed to deepen cooperation in the soybean sector, address industry challenges and opportunities, as well as encourage trade development. It brought together a diverse group of participants from the Brazilian soybean industry that included traders, logistics operators, suppliers, exporters, and financial institutions.

At the seminar, HKEX Chief Administrative Officer Daniel Sonder said: “As China’s only nationally-supported trading platform for the offshore physical trading of soybeans, QME offers a streamlined, transparent and secure online platform for both local and international participants in the soybean trading value chain. This will not only provide new opportunities for participants in the soybean markets, but also help enhance the China-Brazil trade dynamics in the long term.”

Representatives from B3, the Brazilian Vegetable Oil Industry Association (ABIOVE) and Advisia, a Brazilian consulting firm, shared insights on the opportunities and challenges for cross-boarder soybean trading in Brazil and the development of Brazilian commodity derivatives market.

China is the world's largest importer of soybeans, with more than 70% coming from Brazil, while Brazil is the world’s largest exporter, with about 70% of Brazil's total soybean exports sold to China.  

Over the past years, QME has been playing a key role facilitating soybean trades between the two countries. Since its launch in QME in April 2022, the trading volume of physical soybeans has been increasing rapidly, from 0.25 million tonnes in 2022 to 11 million tonnes in the first half of 2024.

QME, jointly founded by HKEX (90.01%) and Shenzhen Qianhai Financial Holdings (9.99%) as a key demonstration project of Shenzhen-Hong Kong cooperation, aims to leverage the credibility and market recognition of the HKEX to provide enterprises with modern supply chain infrastructure and services such as commodity warehousing, delivery, and settlement. It seeks to form a price benchmark that reflects the supply and demand fundamentals of the physical industry, further standardize China's commodity physical trading market, and support the development of the real economy.

HKEX is one of the world's leading international exchange groups, offering a comprehensive range of equities, derivatives, commodities, fixed income, and other financial products and services, including the London Metal Exchange. As a super connector and gateway market bridging the East and the West, HKEX facilitates pioneering interconnectivity mechanisms with mainland China, an increasingly diverse product ecosystem, and a liquid international market.