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Chinese banks halt retail paper gold trading: Risk mitigation or price discovery?
By Melissi Pistilli
Investing News Network, Vancouver
Wednesday, July 22, 2026
In a development causing a stir in the gold sector, Chinese banks are pulling the plug on retail paper gold trading.
Major Chinese banks, including the Industrial and Commercial Bank of China -- the world's largest by assets -- have announced they will cease offering retail paper trading products linked to the Shanghai Gold Exchange (SGE) after settlement on July 24. Postal Savings Bank of China, Ping An Bank, China Guangfa Bank, and China Construction Bank are taking similar actions.
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The banks have advised retail clients to close their positions, liquidate their holdings, and sell or take physical delivery before the deadline. After that access via mobile banking, online platforms, and branches will be restricted.
"Do not mistake this for China cooling on gold. What is being switched off is the speculative paper layer. This move reflects a distinction between leveraged paper trading and physical ownership," Joshua Rotbart, founder of global precious metals bullion firm J. Rotbart & Co., told the Investing News Network in an email.
In fact, physical gold purchases, gold accumulation plans, gold exchange-traded funds (ETFs), and the institutional side of the SGE are unaffected. The gold reserve strategy of the People's Bank of China remains in play as well.
Let's examine the banks' motives and what market analysts predict this means for the global gold market. ...
... For the remainder of the analysis:
https://investingnews.com/china-halts-paper-gold-trading/
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