Since the beginning of this year, with the Federal Reserve's interest rate hike cycle coming to an end and the global de-dollarization process accelerating, the international gold price has risen from 1800 yuan to 2048 yuan, approaching a historical high. Although the interest rate hike cycle has not yet ended, it is widely expected that the international gold price will hit a new high within the year.
       
Along with the rise in the international gold price, many gold stocks have shown impressive performance. Interestingly, we found a central enterprise gold stock in the Hong Kong stock market - China Gold International (referred to as Zhongjin International here), which has surged by eleven times in just three years, with a valuation lower than A-share gold stocks.
       
So, how did a state-owned enterprise stock achieve a spectacular 11-fold increase?
       
       
1. What is the unique strategy of a state-owned enterprise in the gold industry?
First of all, as we mentioned earlier, the current macro environment presents unique historical opportunities for gold. With changes in monetary policy and the macro environment, the profit side of gold enterprises will be boosted.
       
For example, China's push for dedollarization, global central banks buying large amounts of gold, China's role in facilitating the most powerful Shia reconciliation in the Middle East, the oil-producing countries balancing production cuts against the USA, these are all macro phenomena that have never occurred since the disintegration of the Bretton Woods system, indicating a decline in the influence of the USA.
       
The current transitional period has similarities with the Bretton Woods system. The geopolitical tensions have escalated, with countries attempting to balance...