China has begun shifting toward a more stringent strategy in gold trading by curbing individual margin leverage speculation, a move that could encourage investors to own physical gold rather than speculate on price movements without holding the metal.
At least 12 Chinese banks plan to end leveraged trading of precious metals for individuals—a practice that allows ordinary investors to deposit amounts as margin to speculate on gold and silver contracts without actually owning the metal.
This step comes as global gold prices experience sharp fluctuations. Sources at banks, including Industrial and Commercial Bank of China (ICBC)—the world’s largest bank by assets—said that the latest wave of withdrawals was ordered by the Shanghai Gold Exchange, China’s main platform for physical precious-metal trading.
📌12 Chinese banks withdraw from leveraged trading
The latest move came when China Everbright Bank, headquartered in Beijing, announced that it would gradually stop leveraged trading of precious metals for individuals in gold and silver, with implementation beginning after 19 October, without setting a final deadline to complete the process.
Earlier this month, Shanghai Pudong Development Bank issued a similar notice.
Thus, 12 major Chinese lending institutions have announced a line of exit from this activity, including ICBC, Bank of China (BOC), and China Construction Bank (CCB)..
#btc #XUSDCoin
At least 12 Chinese banks plan to end leveraged trading of precious metals for individuals—a practice that allows ordinary investors to deposit amounts as margin to speculate on gold and silver contracts without actually owning the metal.
This step comes as global gold prices experience sharp fluctuations. Sources at banks, including Industrial and Commercial Bank of China (ICBC)—the world’s largest bank by assets—said that the latest wave of withdrawals was ordered by the Shanghai Gold Exchange, China’s main platform for physical precious-metal trading.
📌12 Chinese banks withdraw from leveraged trading
The latest move came when China Everbright Bank, headquartered in Beijing, announced that it would gradually stop leveraged trading of precious metals for individuals in gold and silver, with implementation beginning after 19 October, without setting a final deadline to complete the process.
Earlier this month, Shanghai Pudong Development Bank issued a similar notice.
Thus, 12 major Chinese lending institutions have announced a line of exit from this activity, including ICBC, Bank of China (BOC), and China Construction Bank (CCB)..
#btc #XUSDCoin