Commodities
Chinese Banks Ordered to End Retail Gold Trading Amid Price Volatility
China's Shanghai Gold Exchange has prompted at least a dozen Chinese banks to discontinue retail leveraged precious-metals trading, where investors speculate on gold and silver contracts without owning the physical metal.
The move comes after sharp swings in international gold prices. China Everbright Bank recently announced it would phase out retail leveraged precious-metals trading for gold and silver by a date to be determined after October 19.
Shanghai Pudong Development Bank had made a similar announcement earlier this month, signaling the Shanghai Gold Exchange's push to end the practice.
The Industrial and Commercial Bank of China, the world's largest lender by assets, is among the banks affected.