In the past two years, the phenomenon of “Hong Kong people heading north” has gradually extended from consumer tourism to cross-border asset allocation, with gold investment becoming a focus of attention for many Hong Kong residents. However, with the continuous rise in international gold prices, the Shenzhen Shuibei gold private platform “Jewel Ray” suddenly collapsed, involving approximately 13.3 billion yuan (RMB) and affecting 150,000 families. Ms. Chen, a Hong Kong resident in her fifties, is one of the victims of this gold storm. From the end of January this year until now, she has made multiple trips to Shenzhen to report to the authorities and safeguard her assets. For her, heading north has become a solitary battle to protect her finances.
According to a report by Hong Kong 01, several victims have stated that “Jewel Ray” attracted customers through referrals from acquaintances and promotion within WeChat groups. Ms. Chen also joined relevant WeChat groups based on a friend’s recommendation and registered as a user through a WeChat mini-program.
She mentioned that the platform had a physical counter in Shuibei, Shenzhen, which made many investors trust it. “Everyone thought that having a physical store and a scale meant there would be no issues.”
Unlike traditional Shuibei gold shops where physical gold can be traded on-site, “Jewel Ray” required users to recharge online to purchase gold, and then schedule physical pickup or delivery by mail. Industry insiders pointed out that this model actually helped the platform create a pool of funds.
An industry insider once analyzed that the essence of the “Jewel Ray” model is essentially a bet with an empty glove, where the platform did not fully purchase physical gold with customer funds but rather engaged in gambling in the international gold futures market. “Once they made too many wrong bets and gold prices soared, then it collapsed.”
Ms. Chen had successively purchased gold and silver on the platform, with a total of about 20,000 RMB recharged, corresponding to an asset value of over 50,000 RMB. In mid-January this year, after recharging again, she attempted to withdraw physical goods only to find out that the system was not functioning, which made her realize that something was amiss with the platform.
After January 20, panic among users quickly escalated. Although the legal person of “Jewel Ray,” Zhang Zhiteng, had live-streamed to reassure everyone and promised that the funds would be monitored by the police, the platform soon restricted each user to only withdraw 500 yuan and 1 gram of gold per day. This measure was ironically dubbed by users as “collecting social benefits.” At the same time, grassroots groups formed by victims to seek justice on WeChat and QQ were met with large-scale censorship; the “Jewel Ray” user groups that had been joined in the past were also dissolved by Zhang Zhiteng. Ms. Chen said, “All our groups were disbanded, we have no way to contact each other. They close down one as soon as we open one, so we are all disconnected and don’t know how to communicate.”
“Not long ago, ‘Jewel Ray’ triggered a massive crisis of non-payment due to the fund chain break, and victims from various regions have been gathering locally to seek justice. On January 25 and 27, several hundred users gathered in the Shuibei area of Shenzhen, demanding the platform to return their principal. According to descriptions from several victims, during the justice-seeking process, some were dragged into elevators by staff, some were carried away by the police, barricades were briefly erected around the area, and physical conflicts even broke out outside the Shuibei Jinzuo Building. Videos and messages on WeChat groups showed that some participants had been beaten and restricted from gathering.
In early February, victim Ms. Chen went to the Shenzhen Luohu Public Security Economic Investigation Brigade to report her case. She described the scene as chaotic, with complicated reporting materials and difficulties in filling out the forms. The first report was not successfully submitted, and only after the second attempt did she receive a receipt acknowledging her report.
Lawyers noted that obtaining a receipt meant that the case had been officially recorded, and subsequent efforts for reclaiming losses or compensation would be handled collectively, but the investigative period for filing cases is typically long. This experience was not only a financial loss for Ms. Chen, but also a huge psychological burden. She even dared not inform her daughter, who is a lawyer, and bore the pressure of seeking justice alone.
The Luohu District once made an announcement stating that the platform was working on a repayment scheme. However, the so-called repayment agreement was criticized by victims as “unfair terms,” as it required users to relinquish criminal liability and only receive a 20% compensation of their principal.
Some overseas victims who signed and received compensation soon expressed regret. Ms. Chen also found herself in a dilemma: on one hand, she worried about the lack of justice, and on the other hand, she mistrusted the platform’s requirement to upload a large amount of personal information.
“Jewel Ray” is operated by a Shenzhen-based gold trading company established relatively recently. Industry insiders mentioned that its business expansion speed was fast, mainly relying on social media dissemination and referrals from acquaintances.
The legal person, Zhang Zhiteng, has limited public information available. It was rumored within the industry that he had previously been involved in gold trading, but lacked a background from a large licensed financial institution. After the incident occurred, he reassured investors through a livestream but later became unreachable, leading to questioning from the public.
The investigation into the case is still ongoing, and the police have not disclosed more details.
Industry insiders pointed out that in recent years, some gold private platforms have attracted investors through “online pre-order” and “custodial holding” modes, but lack regulatory safeguards. Once a fund pool is formed and engages in financial derivative trading, the risks are much higher than in physical gold transactions.
As the trend of “Hong Kong people heading north” continues, experts advise that during the process of cross-border asset allocation, one should focus on the counterparty’s qualifications and financial security mechanisms, avoiding neglecting risks due to endorsements from acquaintances or the image of physical stores.