On July 28, a gold industry summit forum with the core topic of "coordinated development of the gold market" was held in the National Convention and Exhibition Center (Shanghai), bringing together elites from commercial banks, gold production and trading enterprises, well-known retailers and other elites in the gold and jewelry industry chain, and jointly participated in a unique roundtable dialogue, which provided thoughts and suggestions for promoting the innovation, integration and coordinated development of the gold market, grasping the new trend of the industry, responding to new challenges in the market, and seeking a new path for the prosperity and development of the gold industry.
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The roundtable dialogue of the Gold Industry Summit Forum was moderated by Wang Lixin, CEO of World Gold Council China, Shi Xudong, Member of the Party Committee and Deputy General Manager of the Precious Metals Business Department of Industrial and Commercial Bank of China, Ge Gen, Deputy General Manager of the Precious Metals and Commodities Business Department of China Construction Bank, Zhou Cankun, Chairman of Shenzhen Baitai Investment Holding Group Co., Ltd., Huang Shikun, Chairman of Shenzhen Jinyafu Holding Group Co., Ltd., Yang Ruiqi, Vice President and Head of Global Finance, UOB China, and Director of Thailand Gold Trade Association. Ms. · Pawan, Chief Executive Officer, YLG Gold & Silver International Group Khun Pawan) had an in-depth and fruitful exchange on key topics such as future trends in the gold market, opportunities for collaboration, and green development.
Moderator: CEO of World Gold Council China
Topic 1
With the increasing emphasis on sustainability and ESG (Environmental, Social and Governance) actions around the world, regulatory compliance standards at the national level are rising, driving companies in all industries to be more proactive in taking on and fulfilling their social responsibilities. What steps have you taken to respond to this trend? Or in what areas do you plan to make further contributions in the future to drive sustainability and positive social impact in the industry?
Shi Xudong: Member of the Party Committee and Deputy General Manager of the Precious Metals Business Department of Industrial and Commercial Bank of China
Under the premise of compliant operation, promoting the innovation and development of the service field should become the consensus of the industry.
This is not only a key cornerstone for banks and other financial institutions to integrate into and lead the future market development, but also a necessary measure to continue to respond to and meet the growing needs of the people for a better life. In view of the vigorous development of the gold market, the banking industry also has some room for innovation in the field of financial products, but it should be clear that directly copying the Western financial derivatives model may encounter many restrictions in China. Our innovation strategy should adhere to the principle of "moving from virtual to real", that is, focusing on the needs of the real economy and developing financial products that are close to the market and serve people's livelihood.
Gegen: Deputy General Manager of Precious Metals & Commodities Business Department of China Construction Bank
This year, China Construction Bank (CCB) has been awarded a double A rating for the first time, marking its outstanding performance in the field of low-carbon economy and ESG, and is highly recognized by the market for CCB's unremitting efforts and contributions in this field.
We believe that as an important force serving the real economy, CCB should always pay attention to the changes in the social environment and promote the satisfaction of the humanistic spirit. We are committed to spreading this concept to all sectors of society through practical actions. In the field of green loans, CCB has reached a scale of 4 trillion yuan. In addition, it has actively participated in the issuance of more than 200 billion yuan of green bonds, providing a solid financial backing for enterprises to achieve green transformation and sustainable development. In the future, CCB will continue to pay close attention to the needs and development direction of enterprises, flexibly adjust financial supporting services, deepen the practice of green finance, and contribute to the realization of the national ecological civilization construction and sustainable development goals.
Huang Shikun: Chairman of Shenzhen Jinyafu Holding Group Co., Ltd
In the production and operation, Jinyafu adheres to a high degree of environmental protection compliance concept, and we are the leader in the industry's 3D printing technology patents.
In the field of hard gold manufacturing, the cyanide-free hard gold technology we developed and applied won the first prize of scientific and technological progress of the China Gold Association. In the sales and recycling process, Jinyafu is also committed to building a compliant and efficient system. We have invested a lot of manpower and resources to independently develop a gold recycling intelligent terminal equipment that can be used around the world, which has been tested in shopping malls and bank outlets in more than 20 cities, and its stability and security have been fully verified. The device integrates advanced Internet of Things, big data and artificial intelligence technologies to achieve full traceability of the gold recycling process and effectively comply with anti-money laundering and anti-fraud regulatory requirements. This not only strengthens the sense of social responsibility of enterprises, but also greatly protects the legitimate rights and interests of consumers and promotes the standardized development of the gold recycling industry.
Topic 2
Since the beginning of this year, gold prices have repeatedly broken new highs, which has not only attracted widespread media attention, but also made gold investment products and gold jewelry the first choice for many consumers to invest and consume. However, in the face of the rising gold price, what are your innovative strategies or countermeasures?
Zhou Cankun: Chairman of Shenzhen Baitai Investment Holding Group Co., Ltd
In recent years, Baitai Group has significantly improved the quality and added value of its products in terms of process research and development, style innovation and IP empowerment.
The first is to increase investment in research and development of the process, making gold products lighter, harder and more fashionable. In a market environment where gold prices fluctuate and rise, such innovative products can still effectively meet consumers' dual pursuit of quality and personalization; Secondly, in terms of style design, Baitai Group deeply excavates the essence of excellent traditional Chinese culture, and at the same time skillfully integrates modern fashion elements, and creates a series of IP products with national tide characteristics through cross-border cooperation and original design; Finally, for the investment market, we have launched a variety of gold investment products with small gram weight and low threshold, which are easy to carry and circulate, and effectively broaden the audience scope of gold investment.
Shi Xudong
In the exploration of physical gold retail business, ICBC deeply understands the importance of conforming to the trend of the times and grasping the cultural trend. At present, culture has become an important force to promote economic and social development, how to integrate the essence of Chinese culture into the gold business, to achieve the innovative development of traditional culture, is a topic that every practitioner must think deeply and actively explore.
Ms. · Pawan Khun Pawan: Director of Thailand Gold Trade Association and CEO of YLG Gold & Silver International Group
Collaboration is the cornerstone of coexistence and a powerful driver of growth.
We have always adhered to an open and cooperative attitude, and actively sought cooperation opportunities with countries around the world. This time, I came to China with the humility to learn, hoping to gain a deeper understanding of the unique operating model and management wisdom of Chinese enterprises. I believe that by learning from each other and sharing experiences, we can inspire infinite possibilities and create a more prosperous future together.
Topic 3
What are the potential areas for further deepening cooperation and synergy between commercial banks and gold and jewellery companies to promote the common growth and development of both businesses? In addition, what contributions can commercial banks make to the construction of Shanghai as an international financial center? With the continuous improvement of Shanghai's status as an international financial center, what opportunities and challenges will the precious metals department of commercial banks face?
Shi Xudong: Compared with their international counterparts, China's commercial banks have a special advantage in terms of business scope, that is, they can intervene in the gold consumer market and carry out retail business of physical gold.
With a large customer base and abundant distribution channels, we have shown a strong role in working with private enterprises. However, as the market environment continues to evolve, we face dual challenges and opportunities: First, the increasingly stringent banking regulatory environment requires us to continuously strengthen compliance management in bank-enterprise cooperation, which puts forward higher requirements for the refinement and transparency of the cooperation model. Secondly, given the strong investment nature of physical gold sold through banking channels, how to skillfully combine this characteristic with the unique charm of gold as a consumer product has become the key to deepening our cooperation with gold and jewelry companies and promoting product innovation. In the future, the focus of cooperation will be on exploring new business models, through product design and service innovation, so that physical gold can not only meet the asset allocation needs of investors, but also stimulate consumers' desire to buy, so as to achieve the dual value integration of investment and consumption.
Gegen
In the first half of this year, we conducted extensive market research and detailed interviews with our core customer groups, and gained insight into the jewellery industry as it enters a critical transition period.
In the face of the instability of the gold price, the increasing aesthetic standards of consumers, and the profound changes in the perception of the value of gold, the entire industry is facing unprecedented challenges and opportunities. For the gold and jewellery industry to successfully embrace this new situation, it will not only need to innovate itself within the industry, but also to provide more flexible and comprehensive financial support from our financial institutions. At present, although we have launched a series of hedging tools, we are still insufficient to meet the diversified needs of the market, especially in the credit policy, there is still a certain degree of conservatism.
Looking ahead, we look forward to making our financial services more open and inclusive as the jewellery industry gradually consolidates its market position, the industry's integrity system continues to improve and strengthen. We sincerely invite all colleagues in the industry to work together to meet the challenges brought about by market changes, grasp the opportunities in transformation, and create a more brilliant tomorrow for the gold and jewellery industry.
Angela Yeo is Deputy Managing Director and Head of Global Markets, UOB China
We must keep an open mind and actively respond to the challenges of the transition. In this process, the "going out" strategy is particularly important, and through wider exchanges and cooperation, we can learn more experience and knowledge. As Shanghai continues to grow as an international financial center, we should strengthen close cooperation with overseas partners and jointly explore and seize new development opportunities in the direction of the Belt and Road Initiative.
Topic 4
As a gold jewellery company, have you encountered any difficulties and challenges in the process of participating in internationalization?
Zhou Cankun
With a strong relationship with many manufacturers in Southeast Asia, we inevitably face the challenges of cultural differences, diversity of religious beliefs, and unique aesthetic preferences when expanding into this market.
In Southeast Asia, 22-carat gold jewellery is dominated by 18-karat gold jewellery, which is very different from the domestic market's consumption habits dominated by pure gold, but it also provides us with opportunities for development. Southeast Asia has a large population, and consumer groups are in the midst of consumption upgrades, thanks to the rapid development of domestic gold technology, we are able to design a rich variety of styles to accurately meet the aesthetics and needs of the local market. With the continuous rise of gold prices and the fluctuation of exchange rates, cost control has become an important problem for enterprises. In the face of opportunities and challenges, we hope that we will continue to improve our strength with a more open and innovative attitude, and work together with foreign partners to create a more brilliant future.
Huang Shikun
I would like to take Jinyafu Smart Gold Store as an example to talk to you about the challenges encountered in the research and development process. In order to ensure that gold can be recycled smoothly through banking channels, our first priority is to obtain qualification from an authoritative third party.
To this end, we have successfully obtained the accreditation of the Testing Center of the Ministry of Public Security and met the strict requirements of GA38 "Bank Security Precaution Standard". In addition, in the face of the bank's anti-money laundering compliance requirements, we ensure that every step of the gold recovery process meets international anti-money laundering standards through careful design and strict technical processes. It is worth mentioning that the achievements of Jinyafu Smart Gold Store in the process of internationalization have exceeded expectations. Our recycling machines have not only attracted wide attention in China, but also won wide coverage in mainstream media in countries such as United States, Japan and France. This series of international recognition has laid a solid foundation for our future global layout.
Wang Lixin
Finally, Wang Lixin summarized the roundtable dialogue, saying: "In this profound roundtable exchange, we deeply realized that in the journey of the gold industry, building confidence, maintaining perseverance and having patience are the three indispensable pillars. At the same time, cognitive height is also our beacon of progress, guiding us to maintain the right direction and efficient working state in a complex and changeable market environment. Through the wonderful sharing of experts, we not only gained valuable industry insights and practical experience, but also gained the courage and determination to face future challenges. These valuable wisdom and experience will undoubtedly provide us with more solid support and guidance in the ever-changing market.