Shenzhen Financial Authority Issues Warning on Illegal Gold Trading Activities

Shenzhen's Local Financial Regulatory Bureau has issued a public notice to further regulate gold market operations. According to Jin10, the notice prohibits companies from engaging in illegal gold trading activities such as pre-pricing transactions, leveraged trading, and deferred transactions. These activities often occur through online platforms like WeChat groups, mini-programs, apps, and websites, where customers are allowed to pay a margin to lock in the price of a certain weight of gold. The transactions are then settled based on price fluctuations, allowing for closing positions without actual physical gold delivery. Additionally, the notice warns against illegal fundraising activities disguised as gold custody, leasing, or buyback agreements that promise fixed returns to customers.