China tightens gold trading rules in Shenzhen after platforms collapse

Fri Feb 13 2026

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.

In Friday’s notice, Shenzhen’s regulators warned of risks posed by illegal fundraising schemes that promise fixed returns under the guise of gold custody, leasing or repurchase arrangements. They also flagged unauthorised gold investment activities, such as inducing consumers to buy physical gold that is then diverted into entrusted schemes.

The directive warned against illegally promoting or selling gold products through online live-streams, misrepresenting non-precious materials as pure gold, adulterating products and charging undisclosed fees on top of listed prices.

Authorities also warned financial institutions against conducting gold-related business without regulatory approval, violating reporting rules for large or suspicious transactions, and delaying, omitting or concealing reports of irregularities.

These institutions were also instructed to withhold services to merchants operating without legal registration, engaging in illegal activities or promoting unlawful schemes.

For individual investors, regulators set out rules prohibiting participation in illegal pre-priced gold trades, gold-backed fundraising schemes and unauthorised gold investment schemes managed on behalf of clients.

They were also prohibited from developing or selling illegal gold-trading software or apps and using such platforms to engage in illegal investment activities, according to the notice.

Source: https://www.scmp.com/