TD Holdings, Inc. (NASDAQ: GLG) stock declined by 4.64% at the last close whereas the GLG stock price gains by 6.42% in the pre-market trading session. TD Holdings is a services company in China that specializes in commodities trading and supply chain management.
GLG stock’ Recent Significant Development
On August 31, 2021, TD Holdings stated that it has gone into a strategic collaboration agreement with Jinyibao International Technology Company Limited, a technology firm that specializes in worldwide gold spot trading. The deal will remain in effect until August 31, 2023.
According to the agreement, JIT aims to accomplish its objective of US$3 billion in gross merchandise volume from worldwide gold spot trading in three years, with China, India, Southeast Asia, the Middle East, Europe, and North America among its target markets. GLG undertakes to create a supply chain service plan for JIT and offer assistance along the supply chain, such as supply chain procurement and sales, inventory pledge financing, accounts receivable management, factoring, financial assistance, and leasing, based on JIT’s needs.
China’s gold production in 2020 is first in the world, as per the China Gold Association’s “China Gold Yearbook 2021.” China’s gold market had a total transaction volume of almost 95,500 tons, with gold demand reaching 820.98 tons. India is only second to China in terms of gold consumption, with 544.6 tons used in 2019. The Company aims to develop its worldwide gold spot trading business in China, India, and the surrounding regions, with an emphasis on China, India, and the surrounding regions.
Ms. Renmei Ouyang, the CEO of GLG stock, stated,
For the Company’s continuous production, collaborating with JIT to access the world gold spot trading market is critical. This transaction enhances the Company’s commodities trading platforms, extends their size, and provides the Company with a new profit growth point.