"China Securities Network" | Yu Wenjian from SGE: Accelerate the construction of financial infrastructure in the gold market and strive to improve the quality and efficiency of serving the real economy

On July 27th, Yu Wenjian, Secretary of the Party Committee and Chairman of the Shanghai Gold Exchange, stated at the 2024 China International Gold Conference: "Currently, China's gold market is facing new situations and new requirements of further deepening high-quality development and boosting the construction of a financial power. It is also in the midst of the 'five shifts' development trends in the international gold market."

Yu Wenjian said that with the continuous development of the global economy and the increasing prosperity of the gold market, the infrastructure of the gold market has undergone significant changes over the past few decades. Firstly, trading venues have shifted from over-the-counter to on-exchange; secondly, the nature of trading has shifted from commodity to financial; thirdly, the regulatory model has shifted from single to multiple; fourthly, tax policies have shifted from neutral to efficiency-oriented; fifthly, the business philosophy has shifted from extensive to green.

Looking forward to the future, Yu Wenjian stated that the Shanghai Gold Exchange adheres to the general principle of seeking progress while maintaining stability, accelerates the construction of an independent, controllable, safe and efficient financial infrastructure for the gold market, prevents and resolves various risks, strives to improve the quality and efficiency of serving the real economy, and promotes the construction of a financial power through the high-quality development of the gold market. Specifically, there are the following four aspects:

Firstly, based on "independence", promote the "upgrading" of innovative development. Closely focusing on the goal of advancing Chinese modernization and the theme of high-quality development, we will continue to strengthen innovation while upholding fundamental principles, accelerate business research and development, optimize information technology security management, improve service capabilities, and fully ensure the safe and stable operation of the gold market.

Secondly, based on "controllability", build a sound market "ecological chain". Proactively integrate into the construction of a complete and effective financial regulatory system, strengthen research on gold market systems, enhance self-discipline management of the gold market, and guide participants in the gold market to abide by market rules and professional ethics.

Thirdly, based on "safety", ensure "no dead ends" in risk management. Continuously optimize the comprehensive risk management system, improve risk classification management, promote differentiated management of business risks, strengthen the prediction and emergency management of risk events, do a good job in investor risk education, and firmly safeguard the bottom line of no systemic risks.

Fourthly, based on "efficiency", achieve "high quality" in market services. Improve the supply of existing products and services, and comprehensively enhance the service efficiency and level of businesses such as trading, delivery, clearing, settlement, and leasing. At the same time, we will adhere to the overall planning of financial opening-up and security, deepen the interconnection between domestic and foreign gold markets, actively participate in the establishment of an international rule system, promote the construction of global gold market standards, and continuously improve the level of opening-up of the gold market.