News
Launch of “Gold Road” Project under the “Belt and Road Initiative” to Upgrade China’s Gold Industry --Re-innovation of Business Mode on Shanghai Gold Exchange’s International Board
Date: 2019-08-08
On August 8, 2019, the first batch of finished products for the “Gold Road” Project under the Belt and Road Initiative on Shanghai Gold Exchange (SGE) International Board, featured by "Gold Leasing plus Jewelry Manufacturing”, was handed over and re-exported in Shenzhen, marking the successful realization of a new business mode under the "Gold Road" Project.
To solidly implement the Belt and Road Initiative and further promote the internationalization of China's gold market, SGE launches the "Gold Road" project jointly with SGE’s International Members under strong support from the People's Bank of China, local governments and other relevant regulatory authorities. SGE aims at creating a brand new business mode combining gold leasing with jewelry manufacturing on SGE’s International Board platform, driven by innovation spirit and restructuring of procedures, in order to explore new cooperative opportunities and approaches among gold markets of the Belt and Road countries.
In this very first transaction of “Gold Leasing plus Jewelry Manufacturing” business mode, SGE’s International Members (UOB (China) Co., Ltd. Shanghai Free Trade Zone Branch and MTS Gold Global Trading) made leasing and lending business through SGE’s International Board platform and consigning jewelry manufacturing with leased gold to the leading Chinese jewelry manufacturing enterprise, Chow Tai Fook Group. The finished products will be then exported to Thailand to complete the whole process of importing, processing and exporting of gold jewelry with an equivalent value of RMB 6 million yuan.
The “Gold Road” Project utilizes SGE’s brand effect as the largest spot gold exchange in the world and the open, transparent, efficient, and convenient trading platform of SGE’s International Board. It is a proactive trial to extend China’s entire industrial chain along the “Belt and Road” route and encourage Chinese gold manufacturers to cooperate with the gold jewelers in such areas. The promotion of this business mode will infinitely assist in bridging demand of gold from “Belt and Road” route and supply from China’s advanced gold manufacturing industry, improve the output of capacity from China's gold manufacturers, enhance cluster development of China's gold industry and accelerate China's gold industrial upgrade; and it will further highlight the function of SGE’s International Board, attract gold market participants along the “Belt and Road” route to the Chinese market, build up a regional gold trading, vaulting and transferring hub and boost internationalization of China’s gold market.