China National Gold (SH:600916) Sou Hu Cai Jing·2025-11-01 13:20Core Points - The article highlights a significant trust collapse in the gold investment sector, particularly involving a fraudulent "gold custody" scheme that has left many consumers without their investments [1][10][22] Group 1: Company Operations - A Beijing store under the "China Gold" brand closed suddenly, taking with it 72.8 kilograms of gold worth over 10 million yuan, indicating a severe operational failure [1][5] - The store was not a direct branch of China Gold but operated as a franchise under "Beijing Sandingyuan Gold Jewelry Co., Ltd." which misled consumers about its legitimacy [7][15] - China Gold's headquarters clarified that they only authorized franchise stores to sell gold and never permitted them to conduct any custody business, highlighting a lack of oversight [7][10] Group 2: Consumer Impact - Consumers who engaged in the gold custody service received only a thin "custody guarantee slip" instead of the physical gold they purchased, leading to significant financial losses [3][5] - The estimated total value of gold involved in these fraudulent activities could exceed 50 million yuan, affecting many families' savings [5][10] - Many consumers were left confused and helpless, holding contracts that became worthless when the stores closed, illustrating a widespread issue of consumer protection in the industry [12][14] Group 3: Regulatory and Industry Issues - The fraudulent activities were exacerbated by the fact that ordinary gold stores are not authorized to engage in gold custody or asset management, which are restricted to financial institutions [10][22] - The article points out that 97.1% of China Gold's 3,642 stores were franchises, raising concerns about the company's management and oversight capabilities [22] - The incident serves as a cautionary tale for consumers to verify the legitimacy of businesses before investing, especially when promises of high returns are made [22]