Following the gold counterfeiting case of Wuhan Jinfeng Jewelry last year, another incident of poor quality gold has recently broken out on the mainland, involving China Gold Group and other Chinese Communist Party state-owned enterprises. After the incident came to light, the state-owned enterprises concerned responded indifferently or rudely.
Comprehensive mainland media reported on March 31, Gansu Province recently informed that the sampling of 251 enterprises 362 batches of products, including sampling 50 batches of precious metal jewelry and products, 9 batches failed. The main reason for failure is quality deviation.
Among the unqualified gold jewelry products, involving China Gold, China Jewelry, China Gold Store, Chow Tai Sang and other enterprises. China Gold, China Jewelry and China Gold Store are all state-owned enterprises of the Communist Party of China.
Calls to the official website of China Gold Group Gold & Jewelry Co. by mainland media have been unsuccessful. The manager of the headquarters of China Gold Store Co., Ltd. had a very bad attitude, foul-mouthed on the phone, and hung up afterwards.
This exposure of China Gold’s poor quality gold comes on the heels of another scandal in mid-March when gold “disappeared” from one of its stores in Hangzhou.
A resident of Hangzhou bought 130,000 yuan worth of gold bars ten years ago and kept them at the gold store. When the price of gold rose recently, the resident tried to get the gold bars out, but the gold store repeatedly delayed and finally said, “The company is in trouble and the gold bars are gone.”
In addition to Gansu Province, Zhejiang Province also in recent days informed the incident of poor quality gold.
Zhejiang Jinhua City, sampling 80 batches of gold jewelry products, 35 batches failed, batch failure rate of 43.75%, including purity and identification. The brands involved in the unqualified products include Jin Liu Fu, Saturday Fortune, Lao Miao, China Jewelry, etc.
Last year, a major gold counterfeiting case broke out on the mainland, the company involved is a large mainland gold jewelry business “Wuhan Golden Phoenix”. After the gold counterfeiting case came to light, Wuhan Jinhuang announced in August 2020 that “the company has notified the NASDAQ Stock Market of its intention to voluntarily delist its common stock from the NASDAQ Capital Market.”
Wuhan Jinhuang had used a total of 83 metric tons of “gold” as security for loans of nearly RMB 20 billion from more than a dozen financial institutions, including Minsheng Trust, Dongguan Trust, Anxin Trust, Sichuan Trust, and Chang’an Trust. But the gold was actually fake gold plated with copper.
Yang Yan, a senior banker, was quoted by Radio Free Asia as saying that the predecessor of Jinhuang Jewelry was a gold factory established in 1994 under the Central Bank of the Communist Party of China, and that Jia Zhihong, the current executive director and general manager, was once the head of a gold mine under the General Logistics Department of the Communist Party of China. Yang Yan questioned that Jia Zhihong denied making fake gold, but that such a large amount of adulterated gold could not have been made without collusion with the gold factory.
As with China Gold and other state-owned enterprises in recent days, Wuhan Jinhuang did not immediately return Bloomberg’s calls for questioning, and no one responded to its two phone numbers in the United States. Caixin.com reported that Wuhan Jinhuang had denied that there was a problem with the gold, but stopped answering calls after that.
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