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Following is the English translation of the speech by the Financial Secretary, Mr Donald Tsang, at the 90th Anniversary of the Chinese Gold and Silver Exchange Society and the Inauguration Ceremony of its 37th Executive and Supervisory Committee:
President Fung, Ladies and Gentlemen,
It is my great pleasure to be here today to celebrate with you the 90th Anniversary of the Chinese Gold and Silver Exchange Society and the Inauguration Ceremony of the 37th Executive and Supervisory Committee. I would like to take this opportunity to congratulate the newly elected President and members of the Committee. I would also like to thank the ex-President and his committee, for their valuable contribution to the Society during their tenure of office.
Gold is a valuable metal and a symbol of wealth. It is an international reserve asset as well as a private investment tool. The impressive economic developments and continued rise in the standards of living in the Asia region over the past 50 years have boosted the growth of the jewellery industry and the demand for gold. Although the gold market cannot be spared from the impacts of the Asian financial turmoil that occurred two years ago, the importance of gold, in particular its use as raw material for the jewellery, electronic and other industries has remained unscathed.
Under the effective leadership of the Chinese Gold and Silver Exchange Society, and the professionalism and self-discipline of the trade, the gold and silver trading industry in Hong Kong has achieved steady development over the years. With years of persistent efforts and promotion by the Society, Hong Kong has developed into a major gold distribution and trading centre in the world. We are also a hub for arbitrage and hedging by businessmen and professional investors. In 1999, a total of 119 tons of gold was imported into Hong Kong and the turnover of the Society amounted to 7 million taels. Because of our advantageous location, Hong Kong has an important place in the international market for assuming a pricing role in Asia, bridging the time gap between the London and the New York markets.
All these achievements would not have been possible without the years of hard work of the Society in maintaining an orderly market and encouraging industry practitioners to attain high professional standards and integrity, to boost the good image of the industry. The Society has also taken the initiative in organising publicity programmes to introduce to the public the operation of the industry and to educate them on gold trading. This very important area of work has helped raise the level of public awareness of fraudulent activities conducted in the name of gold bullion trading.
Looking ahead, the market prospect in China, one of the world's largest gold sellers, is most promising. With China's imminent accession to the World Trade Organisation and the further opening up and development of her economy, the local gold trading market will face new challenges as well as opportunities. I am sure the Society, under the leadership of its new Committee, will continue to demonstrate sharp business acumen and creativity in seizing the upcoming business opportunities. The Society will have a vital role to play in leading the market to new heights and strengthening Hong Kong's position as an international financial centre.
Lastly, I wish the Society every success in the coming year. Thank you.
End/Monday, September 11, 2000
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