Gold Asian giants

This was announced in May 2002, the Governor of the People's Bank of China Dai Syanlun. The reform aims to give full play to the basic functions of the placement and management of gold resources and to promote the healthy development of the production of gold, its circulation and consumption. A long time, China has maintained a planned management, characterized by "a single procurement and distribution."

It is believed that at the initial stage, the system has played a positive role in stabilizing prices, supporting gold production and the security of supply of gold to the needs of economic development. However, the development of the socialist economic system created conditions for unbeatable and discourages production, which was to contain the further development of the industry in the production of gold, and in its processing and sale. This is what causes the need for reform.

The basis of the reform is the creation of the gold market instead of the planned management system. It identified the following areas: the creation of the market in the sale of the metal in Shanghai in the form of membership participation and cancellation of licensing management in the industry, relaxation of controls over the import of precious metals, especially in connection with the reform of the currency exchange, the creation of a new legal framework, regulation of circulation of gold and control of these processes . The People's Bank of China is preparing for activities in the context of the general movement for the reform of the system of managing the gold sector. Consultation and coordination with the relevant departments. As a result, about to have a whole set of programs which, after approval by the State Council to be launched in life - until an experiment. In addition, the Bank has prepared the so-called "Provisional Regulations on management of gold." NSC simultaneously preparing as soon as possible go to the quota of gold, which would mean the elimination of the procurement and distribution of gold. Also canceled a licensing system for the retail business selling gold.

Last year, the sector of gold mining and sale of precious metals have been some of the reform measures. So, in late November, started pilot operation in Shanghai Gold Exchange. Thus, the beginning of deregulation and reform of trade in precious metals. In the creation of the gold exchange under the supervision of the People's Bank of China, attended the state and commercial banks, including the Bank of Commerce, Bank of China and Construction Bank. Bank of Commerce is a leading player in the creation of the exchange. In addition to these three banks, exchange members are also about 100 other Chinese commercial banks, and manufacturers of gold and jewelery. According to the State Administration of gold, China is planning to reform the industry within two to three years.

As stated above, the gold industry in China has shown good results in 2001, gross production industry exceeded 21 billion yuan. Added value was 4.5 billion yuan (up to the previous year - 3.8%). The profit remained at the same level, about 1 billion yuan. The average purchase price was 70.24 yuan per gram, up 5.24 yuan lower than in 2000. It is because of falling prices sector lost more than 700 million profit. Nevertheless, even at this level of profitability of almost all large and medium state-owned companies operating in the industry, have ceased to be unprofitable.