RMB settlement of LME commodities futures could impede market progress

Currency risk from weak yuan and restrictions on moving RMB offshore will deter investors

Copper tubes

Hong Kong Exchanges and Clearing's (HKEx) plans to launch renminbi-denominated metals and coal futures contracts on its trading platform later this year will create a potential foreign exchange risk for investors and may deter participants until the "through train" trial is extended beyond equities, say market experts.

HKEx announced on April 22 that it would list aluminium, zinc, copper and thermal coal futures on the exchange later this year. The first three contracts will be traded and settle