Profile

Profile

History

Founded in 1910, the Chinese Gold and Silver Exchange Society (“CGSE”) is the sole exchange in Hong Kong which trades physical gold and silver, and operates in pursuance of section 3 of Chapter 82 of Laws of Hong Kong, under which its operation as a commodity exchange is legally exempted. Run on a membership- based system, CGSE now has 171 Members and is managed by the Executive and Supervisory Committee, which comprises 21 Directors and Supervisors. The mission of CGSE is to provide an exchange, facilities and related services to its Members for transaction of precious metals, such as gold and silver. CGSE trades 99 Tael Gold and Kilobar through an open outcry system; and Loco London Gold / Silver Contract, RMB Kilobar Gold, HK Dollar 999.9 Tael Gold and HK Dollar Loco Silver 1 through “Electronic Trading Platform”. “Transaction Code” is also provided to parties in the transactions.

In order to tie in with the internationalized standards and requirements of precious metal industry, CGSE set up a modernized assay centre - "Hong Kong Precious Metals Assay Centre", which obtained the qualification of accredited laboratory under "Hong Kong Laboratory Accreditation Scheme" of the Hong Kong Accreditation Service. Moreover, in order to facilitate the implementation of “Practitioners’ Registration System”, CGSE has conducted course on “Certificate in Gold and Silver Markets” in collaboration with the Hong Kong Securities Institute and published "Study Learning Manual" to enhance practitioners’ professional knowledge about precious metals markets and their integrity.

Mission

To develop business related to gold, silver and precious metals
To explore new products related to gold, silver and precious metals
To maintain and to strengthen the relationship and cooperation with international gold markets
To help its members in business development, and to safeguard the rights and interests of its members and practitioners
To foster knowledge and professional standards of its members and practitioners, to benefit the public

Functions

To provide a trading place, facilities and related services to its members for gold, silver and precious metals transactions;
To set up and implement rules and regulations, and to normalize the transactions;
To supervise transaction process, settlements and delivery arrangement;
To design trading contracts and regulations, and to monitor the fulfillment and completion of the contract;
To set up and implement the risk management system as to control the risk in the market;
To set the settlement price, to announce and disseminate market information;
To supervise all transactions, to examine and execute punishment if any members' act violates CGSE rules and regulations;
Other functions stipulated by its members and the Executive and Supervisory Committees.
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