The London Metal Exchange has approved the international arm of Bank of China as its first Chinese member in its 135 years of history as China becomes the largest consumer of many raw materials and metals traded at the exchange.

BOCI Global Commoidities (UK) limited was approved for membership of the LME under the category 2 as associate broker clearing, LME said in an e-mailed statement Tuesday afternoon, London time.

The move came as Chinese banks eye commodity trading business generated from the country's vast demand for raw materials. While China's commodity demand has been increasing rapidly, the trading has been dominated by foreign banks so far.