China's Big Banks Halt Leveraged Gold and Silver Futures Trading

Chinese banks are shutting down leveraged precious metals futures contracts for retail customers. At least a dozen large Chinese banks, including ICBC and Bank of China (BOC), plan to end these contracts.

The Shanghai Gold Exchange margin-traded deferred contracts, including Au(T+D) and Ag(T+D), will be discontinued. This move could potentially increase demand for physical metal in China, the world's largest gold market.

Beijing-based China Everbright Bank is the latest Chinese institution to announce an end to leveraged precious metals trading, targeting an exit sometime after Oct. 19.