Xinhua News Agency | Yu Wenjian from Shanghai Gold Exchange: Building an independently controllable, safe and efficient financial infrastructure for the gold market

"The Shanghai Gold Exchange will accelerate the construction of an independently controllable, safe, and efficient financial infrastructure for the gold market, prevent and resolve various risks, improve the quality and efficiency of serving the real economy, and promote the building of a financial power through the high-quality development of the gold market."

Xinhua Finance, Shanghai, July 28 (Reporters Chen Yunfu, Ren Jun) Yu Wenjian, Chairman of the Shanghai Gold Exchange, stated on the 27th that China's gold market is facing new situations and new requirements for high-quality development and boosting the construction of a financial power. The Shanghai Gold Exchange will accelerate the construction of an independently controllable, safe, and efficient financial infrastructure for the gold market, prevent and resolve various risks, and improve the quality and efficiency of serving the real economy.

Yu Wenjian said at the 2024 China International Gold Conference hosted by the China Gold Association and the World Gold Council that with the development of the global economy and the increasing prosperity of the gold market, significant changes have taken place in the world gold market. The trading venues for gold have shifted from over-the-counter to on-exchange, the trading nature has shifted from commodity to financial, the mode of market supervision has shifted from single to multiple, and tax policies have shifted from neutral to efficient. That is, major gold markets attach great importance to efficiency first when formulating tax policies to avoid large differences between domestic gold prices and international gold prices. In addition, major gold markets have gradually integrated the concept of green and low-carbon into daily operations, and their management methods have shifted from extensive development to green and low-carbon development.

Yu Wenjian said that China's gold market is also in this changing trend. Facing the new situation and new requirements, the Shanghai Gold Exchange will accelerate the construction of an independently controllable, safe, and efficient financial infrastructure for the gold market, prevent and resolve various risks, improve the quality and efficiency of serving the real economy, and promote the building of a financial power through the high-quality development of the gold market.

Among them, based on "independence", the Shanghai Gold Exchange will promote the "upgrading" of innovative development, continue to strengthen innovation while adhering to the right direction, accelerate business research and development, optimize information technology security management, improve service capabilities, and ensure the safe and stable operation of the gold market.

In terms of "controllability", it will take the initiative to integrate into a complete and effective financial regulatory system, strengthen research on gold market systems, enhance self-regulation of the gold market, and make the financial culture with Chinese characteristics truly become the work orientation and action criterion for promoting the high-quality development of the gold market.

In terms of "safety", it will ensure "no dead ends" in risk management, continue to 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 establish the bottom line of preventing systemic risks.

In addition, in terms of "efficiency", it will further improve service supply and comprehensively enhance the efficiency and level of services such as trading, delivery, clearing, settlement, and leasing. At the same time, it will adhere to the coordination of financial opening-up and security, deepen the interconnection of domestic and foreign gold markets, actively participate in the establishment of international rule systems, promote the construction of global gold market standards, and enhance the level of opening-up of the gold market.

As a hub of China's gold market and an important global trading center for gold, silver, and platinum, the gold出库量 of the Shanghai Gold Exchange reached 1,687 tons in 2023, which is about 3% higher than the average level of the past five years, indicating strong momentum in China's gold consumption market.

"Benefiting from China's strong economic growth, China's gold market has occupied a solid leading position internationally. Over the past decade or so, the Chinese market has been the world's largest gold consumer and has also been the world's largest gold producer for many consecutive years," said泰达维, Chief Executive Officer of the World Gold Council.