Core Viewpoint - The price of gold has reached a historical high, leading to the discreet removal of "investment gold" from the Shenzhen Shui Bei market, the largest gold and jewelry wholesale market in China [1] Summary by Relevant Sections Market Changes - Since the announcement of the new gold tax policy in November, the pricing display in the Shui Bei market has undergone multiple adjustments, initially showing separate prices for "investment gold" and "jewelry gold" [1] - Recently, the market no longer distinguishes between "investment gold" and "jewelry gold," and the "investment gold" option has been removed from the pricing screens operated by the Shui Bei Association's app [1] Industry Response - Some merchants in the Shui Bei market have indicated on social media that "there is no longer investment gold in the Shui Bei market" [1] - The new tax policy categorizes gold into investment and non-investment types and encourages investment gold to enter centralized trading on the Shanghai Gold Exchange and the Shanghai Futures Exchange [1]

Core Viewpoint - The recent changes in the pricing system of Shenzhen's Shui Bei market reflect the impact of the new gold tax policy, leading to the removal of "investment gold" pricing and a shift towards a unified pricing model for gold products [1][2][7]. Group 1: Market Changes - The Shui Bei market, known as China's largest gold and jewelry wholesale market, has stopped distinguishing between "investment gold" and "jewelry gold" in its pricing displays [1][2]. - Following the announcement of the new gold tax policy in November, the market has undergone multiple adjustments in its pricing strategy, with the latest change being the removal of "investment gold" from public displays to avoid consumer confusion [2][4]. - The price of gold in Shui Bei has risen significantly, with major brands like Chow Tai Fook and Chow Sang Sang seeing prices exceed 1400 RMB per gram, while Shui Bei's gold price has surpassed 1160 RMB per gram [2]. Group 2: Tax Policy Impact - The new tax policy categorizes gold into investment and non-investment types, encouraging investment gold to be traded on regulated exchanges, which has led to a decline in the profitability of non-member units in the Shui Bei market [7][8]. - The tax reform has resulted in a clear differentiation in profit margins between member and non-member units, with only about a dozen member units remaining active in the investment gold business [7][8]. - The changes in tax policy are expected to lead to a more concentrated market for investment gold, while increasing tax burdens on non-investment gold, potentially raising retail prices [8][9]. Group 3: Market Dynamics and Future Outlook - Shui Bei's business model, characterized as "front store, back factory," is facing challenges as many merchants are transitioning away from investment gold due to reduced profitability [5][6]. - The market is expected to adapt by focusing on consumer needs and enhancing supply chain support, with an emphasis on brand development, talent acquisition, and quality assurance in the gold jewelry industry [9]. - The Shui Bei market is projected to maintain a high customer flow, with estimates of over 120 million visitors by 2025, despite the ongoing adjustments in its operational model [5].