China tightens gold trading rules in Shenzhen after platforms collapse
Regulators intervene to contain fallout after volatility in global prices sparks market turmoil at home
Ten government departments – including the local financial regulatory bureau and the Shenzhen branch of the People’s Bank of China – issued a notice on Friday to “prevent and defuse market risks, protect consumers’ lawful rights and interests, and promote the healthy development of the gold market”.
The directive prohibited operators from engaging in illegal trading activities, including irregular pre-pricing and leveraged or deferred transactions. Operators were also barred from making false, misleading or sweeping claims – including slogans such as “gold will surge” – that could deceive consumers and businesses.
Gold prices have remained volatile, but have gradually recovered from a low of about US$4,400 per ounce at the start of February to US$4,969 on Friday afternoon.