China’s ‘gold fever’ sparks US$1 billion scandal as trading platform collapses

South China Morning PostCenter-RightEN 1 min read 100% complete by He HuifengJanuary 29, 2026 at 05:40 AM

AI Summary

short article 1 min

A major gold trading platform, JWR, collapsed in Shenzhen, China, leaving tens of thousands of retail investors with estimated losses exceeding 10 billion yuan (US$1.4 billion). The platform's failure occurred after a surge in gold prices prompted a wave of customers to cash out, creating a liquidity crisis. Investors gathered to demand their money back, requiring police intervention. Authorities in Shenzhen have launched an investigation into JWR's business operations following the platform's inability to meet redemption requests. The incident highlights the risks associated with online metals trading amid a recent surge in gold prices.

Key Entities & Roles

Key Player Opposition Context

Luohu 60% Yicai ×260% Shenzhen ×380% China 90% JWR ×395%

Keywords

gold trading platform 90% retail investors 80% liquidity crunch 70% financial scandal 70% jwr 60% gold prices 60% redemption requests 50% shenzhen 50% police intervention 40%