Chinese Banks Cease Retail Leveraged Precious-Metals Trading Following Shanghai Gold Exchange’s Directive

In a notable development affecting the financial landscape, around twelve Chinese banks are making arrangements to halt retail leveraged precious-metals trading. This practice enables ordinary investors to engage in gold and silver contracts without physically possessing the metals, a speculative endeavor needing margin deposits. The motive behind this collective shift in approach relates to the heightened volatility experienced in global gold prices. Notably, sources within key banks such as the Industrial and Commercial Bank of China – known for holding the title of the world’s largest lender by assets – have confirmed that the recent decisions were strategically enforced courtesy…