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China Fund News Dawn

As gold exchanges across the country cleared their positions one after another, Beijing also took action!

July 31,Beijing Financial Assets Exchange (hereinafter referred to as BEIJING FINANCIAL ASSETS EXCHANGE)Issued an announcement on the termination of local financial asset trading business.

The announcement shows thatThe Beijing Financial Exchange will no longer carry out general financial exchange business, including the transfer of non-listed state-owned property rights and non-performing assets, and will complete the closing of existing business within a specified period of time.. From the date of the announcement, the Beijing Financial Exchange will no longer conduct or accept new applications for the above-mentioned business.

Public information shows that gold exchanges in many places have undergone adjustments since the beginning of this year. Financial regulatory authorities in Hunan, Liaoning, Chongqing, Shandong and other places have successively announced the closure of gold exchanges in their jurisdictions and the cancellation of business qualifications of gold exchanges in their jurisdictions.

Beijing Financial Assets Exchange

Termination of local financial asset trading business

First, let’s take a look at the announcement of the Beijing Financial Exchange:

In order to implement the decisions and arrangements of the CPC Central Committee, the State Council and the national inter-ministerial joint conference on clearing up and rectifying various types of trading venues, and in accordance with the notification requirements of the Beijing Local Financial Management Bureau on the withdrawal of Beijing Financial Assets Exchange Co., Ltd. from local trading venues, the Beijing Financial Assets Exchange will no longer carry out general gold exchange business including non-listed state-owned property rights transfers, non-performing asset transfers, etc., and will complete the closing of existing business within a time limit.

From the date of the announcement, the Beijing Financial Exchange will no longer conduct or accept new applications for the above-mentioned business. For the above-mentioned business in the Beijing Financial Exchange, the unfinished stock projects will be handled in the following manner:

For projects that have issued information disclosure announcements but have not generated a transferee, the Beijing Financial Exchange will terminate the information disclosure of such projects from 17:30 on August 30, 2024, and the trading of such projects will be terminated at the same time;

For projects that have already generated transferees before the announcement but have not completed the on-site trading process, as well as projects that have generated transferees after the announcement, please properly complete or terminate the on-site trading process at the Beijing Financial Exchange before 17:30 on August 30, 2024, and complete transaction procedures such as fund transfer and issuance of transaction certificates. The Beijing Financial Exchange will actively cooperate with market members to terminate and wrap up on-site projects.

In accordance with the requirements of the regulatory authorities, the Beijing Financial Exchange has decided to officially terminate the above-mentioned business services from 17:30 on August 30, 2024, and will uniformly close the relevant business system permissions. If there are still business legacy matters at that time, the Beijing Financial Exchange will not be able to organize on-site transactions and provide related business services. If the on-site transaction process of the existing business is not completed within the above-mentioned time limit, please be fully aware of the relevant risks.

Public information shows that Beijing Financial Exchange is a professional financial asset trading institution established under the guidance of the People's Bank of China and approved by the Beijing Municipal People's Government. It was officially launched on May 30, 2010. Beijing Financial Exchange is a designated trading platform of the National Association of Financial Market Institutional Investors approved by the People's Bank of China, and a bond issuance and trading platform approved by the People's Bank of China.

Information on the official website shows that the Beijing Financial Exchange currently has four major business platforms, including bond trading and operation business, debt asset trading business, equity asset trading business, and convertible asset trading business.

Many places cancel the business qualifications of gold exchanges

Looking back, in May 2010, Tianjin Financial Assets Exchange was registered and established, becoming China's first national gold exchange. Subsequently, gold exchanges in various places were established and developed one after another, and after more than a decade of wild growth, they gradually came to an end.

Since the beginning of this year, a wave of closures has been set off in gold exchanges across the country. In March this year, Hunan, Liaoning, Chongqing, and Xi'an successively announced that they would cancel the relevant business qualifications of gold exchanges in their jurisdictions. Subsequently, the Fujian Provincial Local Financial Management Bureau issued an announcement that the financial asset trading business qualifications of Fujian Straits Financial Assets Trading Center Co., Ltd. would be revoked.

From May to June this year, financial regulatory authorities in Shenzhen, Shandong, Jilin, Jiangxi, Qingdao, Guangdong, Tianjin, Shanxi, Heilongjiang, Hainan, Henan, Xiamen, Ningbo and other provinces and cities issued relevant announcements to cancel the business qualifications of gold exchanges within their jurisdictions.

On July 8, the Sichuan Provincial Local Financial Administration issued an announcement that in order to implement the national financial regulatory requirements, Sichuan Financial Assets Exchange Co., Ltd. took the initiative to apply to withdraw from the trading venue industry and no longer engage in trading venue-related businesses. As of the date of the announcement, there are no legal financial asset trading venues in Sichuan Province.

After the original business was suspended, some regional gold exchanges have accelerated their transformation. Tianyancha information shows that Tianjin Financial Assets Exchange Co., Ltd. has recently changed its name to "Tianjin Huasu Price Evaluation Co., Ltd." and Ningbo Financial Assets Trading Center Co., Ltd. has changed its name to "Ningbo Running Tiancheng Management Consulting Co., Ltd.". The business scope has also been changed accordingly and no longer includes "engaging in various financial asset transactions and related services" and other business scopes.

In addition, local financial management bureaus have also issued many announcements on preventing the risks of "pseudo financial exchanges" to warn investors of the risks.

For example, last month the Wuhan Municipal Local Financial Management Bureau issued an announcement stating that recently, there have been companies in the market that have used words and content such as "finance", "exchange", "trading center", "financial management", "wealth management", "investment management", "asset management", "equity crowdfunding", "related local financial business" in their names or business scope without the permission of the competent national departments, or that may cause public misunderstanding, and are providing registration and filing services for non-standard debt financing activities. They are suspected of engaging in "pseudo financial exchange" activities, damaging the rights and interests of investors, and posing great financial risks.

The relevant announcement pointed out that "fake financial exchanges" refer to industrial and commercial enterprises that provide registration and filing services for non-standard debt financing activities without the permission of the competent national departments and in violation of national financial management regulations. According to relevant regulations, except for trading venues approved by the national financial regulatory authorities, other local trading venues (trading centers) and enterprises are not allowed to directly or indirectly provide services and conveniences for the issuance and sale of various non-standard debt financing products in the name of registration, filing, listing, intermediary, financial advisory, information release, etc.

At the same time, enterprises should conduct financing activities in accordance with the law and regulations, and should not use "pseudo gold exchanges" as trading platforms to carry out financing activities. Investors are requested to be highly vigilant against the risks of "pseudo gold exchanges", improve risk prevention awareness and risk identification capabilities, choose legal investment channels, consciously resist unqualified trading platforms or institutions, and effectively safeguard their own legitimate rights and interests and ensure property safety.

Editor: Joey

Review: Xu Wen

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