Commodities - Hong Kong

Hong Kong

The nominal value in the Commodities market is projected to reach US$269.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.61% resulting in a projected total amount of US$306.40bn by 2029.
The average price per contract in the Commodities market amounts to US$0.22 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 1,375.00k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Hong Kong has been experiencing a notable shift in recent years, reflecting the changing dynamics of the global financial landscape.

Customer preferences: Investors in Hong Kong have shown a growing interest in commodities as a way to diversify their investment portfolios and hedge against market volatility. The appeal of commodities lies in their potential for high returns and as a strategic asset allocation tool.

Trends in the market: One of the prominent trends in the Hong Kong Commodities market is the increasing popularity of commodity futures trading. This trend is driven by the sophisticated investor base in Hong Kong seeking exposure to a wide range of commodities, including precious metals, energy, and agricultural products. Additionally, the development of innovative financial products and trading platforms has made it easier for investors to participate in the commodities market.

Local special circumstances: Hong Kong's strategic location as a global financial hub plays a significant role in shaping the commodities market in the region. The city's proximity to major commodity markets in Asia, such as China and Singapore, provides investors with easy access to a diverse range of commodities. Moreover, Hong Kong's strong regulatory framework and well-established financial infrastructure make it an attractive destination for commodities trading.

Underlying macroeconomic factors: The commodities market in Hong Kong is influenced by various macroeconomic factors, including global economic conditions, geopolitical events, and market sentiment. As a major financial center, Hong Kong is particularly sensitive to changes in global trade patterns and monetary policies, which can impact commodity prices and trading volumes in the region. Additionally, fluctuations in currency exchange rates and interest rates can also have a significant impact on the commodities market in Hong Kong.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.