Authorities in the southern Chinese city of Shenzhen have warned gold market operators not to use exaggerated slogans such as “get rich by buying gold”, barring them from making inflated promises to retail investors after two trading platforms failed amid
sharp price swings in global markets.
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.
The move followed the recent, high-profile
collapse of two trading platforms in Shenzhen’s Shuibei – widely regarded as the heart of China’s market for the precious metal – amid historic volatility in global gold and silver prices since late January.
A gold-buying frenzy has swept the world in recent months, fuelled by
growing talk of de-dollarisation linked to US President Donald Trump’s policy swings. The spot price surged to a record above US$5,400 per ounce, prompting retail investors to rush in and capitalise before prices tumbled by more than 9 per cent in a single session on the last trading day of January.
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.
South China Morning Post
