China tightens gold trading rules in Shenzhen after platforms collapse

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In Shenzhen, China, authorities have tightened regulations on gold trading after two platforms collapsed due to market volatility. A joint notice from ten government departments, including the local financial regulatory bureau and the People's Bank of China, aims to protect consumers and promote market stability. The directive prohibits illegal trading activities like irregular pricing and leveraged transactions. Operators are also barred from using misleading advertising, such as guaranteeing profits, to attract investors. This action follows significant price swings in global gold markets since late January, which led to the failure of the trading platforms in Shenzhen's Shuibei district. The new rules seek to prevent future market risks and safeguard investors' interests.
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