.China Clamps Down on Gold Trading Frenzy
Gold exchanges in China outside of two in Shanghai are to be banned, authorities said in a statement released on Tuesday.
Gold exchanges have mushroomed across China, from the northern port city of Tianjin to Guangxi bordering Vietnam, as spot prices in the precious metal [XAU= 1555.59 0.40 (+0.03%) ] have soared to record highs and speculation has boomed.
"No local authority, institution or individual is allowed to set up gold exchanges," said the notice dated December 20 and jointly issued by the People's Bank of China, the Ministry of Public Security and other regulators.
The notice — published on the central bank website (www.pbc.gov.cn) — said the Shanghai Gold Exchange and the Shanghai Futures Exchange are enough to meet domestic investor demand for spot gold and futures trading.
Existing exchanges or "platforms" were told to stop offering new services.
The PBOC cited lax management, irregular activities and evidence of illegality which were causing risks to emerge, as the reasons for taking the decision.
The central bank said it would lead a team to clear up the mess — gold exchanges will be altered or closed, banks will stop providing clearing services to them; and some people will be put under police investigation, PBOC said.
An official at the Beijing Gold Exchange Center, who declined to be identified, told Reuters over the phone that the exchange has not received any detailed instructions.
"But the talk of a crackdown has been going on for a while," he said. "Of course, this affects our business."
CNBC
Closing exchanges might be the first step in confiscation..
Gold exchanges have mushroomed across China, from the northern port city of Tianjin to Guangxi bordering Vietnam, as spot prices in the precious metal [XAU= 1555.59 0.40 (+0.03%) ] have soared to record highs and speculation has boomed.
"No local authority, institution or individual is allowed to set up gold exchanges," said the notice dated December 20 and jointly issued by the People's Bank of China, the Ministry of Public Security and other regulators.
The notice — published on the central bank website (www.pbc.gov.cn) — said the Shanghai Gold Exchange and the Shanghai Futures Exchange are enough to meet domestic investor demand for spot gold and futures trading.
Existing exchanges or "platforms" were told to stop offering new services.
The PBOC cited lax management, irregular activities and evidence of illegality which were causing risks to emerge, as the reasons for taking the decision.
The central bank said it would lead a team to clear up the mess — gold exchanges will be altered or closed, banks will stop providing clearing services to them; and some people will be put under police investigation, PBOC said.
An official at the Beijing Gold Exchange Center, who declined to be identified, told Reuters over the phone that the exchange has not received any detailed instructions.
"But the talk of a crackdown has been going on for a while," he said. "Of course, this affects our business."
CNBC
Closing exchanges might be the first step in confiscation..
posted by madtom at 10:13 PM
3 Comments:
That's one of the scariest economic reports in a long time. When the capitalists in China start risking their lives in the face of the unknown but clearly coming cataclysm, you better know it's coming.
So, MT, what do you think is coming with Iran? That is where it's going to happen, even though most of it has nothing to do with Iran. War by October with little doubt, but I can't help but think Obama is letting really smart people do what is coincidentally smart for him politically. The CIA has had a free rein for a decade and they are back to doing the fun stuff. And the ruling idiots in Iran are playing along because they must be really stupid people at heart to believe what they believe. Threaten to close the Straits while pushing to get a bomb tested less than a year from an election for an unpopular President? Asking for an ass reaming from a Navy with a hard on for the kind of glory being given to ground forces for the last decade........ They are so ready to put a hurt on somebody real bad....and would His Oliness tell them NO? Hell NO he wouldn't....Tonkin Bay.... look it up.
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Dude I have no idea, so many reports, so much danger from so many fronts it's hard to pick one..I don't think there will be a direct conflict with Iran, they have so much on their plate right now it's more likely they will implode on their own...maybe with a little help. But right now I think the economic war is more likely, an economic world war like nothing we have seen before.
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