المنتدى الدولى للصحافة والإعلام

Haidy Mostafa Makki

In an official move that reshapes trading in the world’s largest gold market, Chinese banking decisions banning and liquidating “paper gold” trading accounts and high-risk derivatives for retail investors have entered full implementation. Millions of traders are now required to close their financial positions or convert them into tangible physical gold within a specified deadline.

Key Deadline and Timeline:

Announcement Date: Chinese banks issued directives and notifications to customers on June 24–25, 2026, granting approximately one month for liquidation.

Final Implementation Date: Following the completion of the clearing session on July 24, 2026, all accounts and digital applications related to financial derivatives trading for individual investors through banks will be closed.

These structural measures come as Chinese regulators seek to put an end to speculative trading, protect small investors from sharp market volatility, and rebuild China’s gold market on a solid foundation based on physical bullion stored in vaults.

Tightening the Grip on “Digital Trading”:

According to data released by China’s major state-owned and commercial banks—including the Industrial and Commercial Bank of China (ICBC), Postal Savings Bank of China, and Ping An Bank—all agency trading services for gold and silver futures and deferred contracts (such as Au T+D contracts) offered to individual investors through the Shanghai Gold Exchange (SGE) have been completely discontinued.

The banks not only stopped opening new accounts but also raised margin requirements on existing accounts to record levels of 140%, forcing speculators to liquidate their positions. Meanwhile, corporations and major financial institutions were fully exempted, while the purchase and ownership of physical bullion and Exchange-Traded Funds (ETFs) were facilitated.

The British newspaper Financial Times confirmed that the Chinese move reflects a serious determination by the central bank and financial authorities to “cleanse the banking system of complex financial instruments” that could pose systemic risks. It explained that leveraged trading by small investors had encouraged reckless speculative behavior, making investor protection a top priority to prevent liquidity crises or payment defaults.

In an analytical report, Reuters indicated that the closure of paper gold trading for retail investors is primarily intended to redirect household savings toward safer and more stable assets. It quoted economic analysts as saying that Beijing aims to reduce the noise generated by screen-based trading and rapid speculation so that domestic gold prices more accurately reflect the actual supply and demand for physical gold.

The American newspaper The Wall Street Journal highlighted the strategic dimension of the decision, noting that China—as both the world’s largest consumer and producer of gold—is seeking to consolidate gold pricing power within the Shanghai Gold Exchange. Rather than relying on paper and derivative contracts, as is common in the markets of Wall Street and London, Beijing wants to strengthen a market based directly on tangible physical delivery.

A New Map for Precious Metals Markets:

Economists believe that this shift will redraw the landscape of gold demand. While the overall volume of screen-based trading in China may decline due to the withdrawal of retail investors and digital gold trading, actual demand for purchasing and storing physical bullion is expected to rise significantly.

This structural transformation establishes a new reality: Beijing refuses to let the price of its gold remain hostage to “screens and virtual numbers” and insists that only real, physical gold has the final say.