In response to the recent collapse of several trading platforms and the volatility in global gold prices, Chinese regulators have intensified monitoring and implemented new rules for gold trading in Shenzhen. A joint notice from ten government departments, including the local financial regulatory bureau and the Shenzhen branch of the People’s Bank of China, aims to stabilize the market and safeguard consumers' interests. The notice outlines prohibitions on illegal trading practices, such as irregular pre-pricing, leveraged transactions, and making misleading claims about price surges that could mislead consumers and businesses.

The regulatory measures come as gold prices, which had seen significant fluctuations, are beginning to recover from a low point. Notably, prices increased from approximately US$4,400 per ounce at the start of February to around US$4,969 by Friday afternoon. This recovery provides some relief within the market, but the ongoing volatility underscores the need for regulatory vigilance. The actions taken by the authorities signify an effort to restore confidence in the gold trading market amid fears of further instability.

These developments highlight the delicate balance regulators must maintain to ensure a healthy market while protecting investors. By enforcing these new rules, the Chinese government aims to prevent future collapses of trading platforms and foster a more transparent and secure environment for investors in gold, which remains a popular asset class in China. As the global gold market continues to experience fluctuations, the effectiveness of these regulations in stabilizing the local market will be closely observed.