Core Viewpoint - Shenzhen is implementing stricter regulatory measures to combat the rise of illegal activities in the gold market, as highlighted by a recent public notice from ten departments [1][9]. Group 1: Regulatory Measures - The public notice outlines a total of ten "red lines" for enterprises, individuals, financial institutions, and non-bank payment agencies, with six for enterprises, two for individuals, and two for financial institutions [1][9]. - This is the second warning issued by Shenzhen regarding illegal financial activities in the gold sector within three months, following a previous alert in November [1][9]. Group 2: Prohibited Activities for Enterprises - Enterprises are prohibited from engaging in illegal gold trading activities such as pre-pricing, leveraged trading, and deferred trading through various online platforms [3][11]. - They cannot conduct illegal fundraising activities under the guise of gold custody, leasing, or repurchase agreements that promise fixed returns [3][11]. - Enterprises must not mislead consumers through false advertising or unauthorized use of "Shanghai Gold Exchange member" status [12]. - It is forbidden to use non-precious materials to impersonate pure gold or to charge undisclosed fees [4][12]. Group 3: Prohibited Activities for Individuals - Individuals are barred from organizing or participating in illegal gold trading activities, including illegal fundraising and gold investment [5][13]. - They cannot develop or sell illegal gold trading software or apps, nor provide support for such activities [5][13]. Group 4: Prohibited Activities for Financial Institutions - Financial institutions must not conduct gold business without proper registration or approval from regulatory authorities and must adhere to reporting requirements for large and suspicious transactions [6][14]. - They are also prohibited from providing services to merchants engaged in illegal activities or promoting illegal gold activities [6][14]. Group 5: Previous Illegal Cases - The Shenzhen Financial Office previously identified three illegal cases involving gold businesses that misled consumers and engaged in fraudulent activities [6][15]. - These cases included schemes where consumers were induced to purchase gold without actual delivery, leading to illegal investments and potential financial losses [7][15][16].

Core Viewpoint - The Shenzhen Municipal Bureau of Local Financial Management issued a public notice on February 13, 2026, prohibiting illegal gold trading activities, including gold pricing transactions, leveraged trading, and deferred trading, which have been linked to fraudulent fundraising practices [3][4]. Group 1: Regulatory Actions - The notice explicitly states that enterprises are not allowed to engage in illegal gold pricing transactions, leveraged trading, and deferred trading through various online platforms, including WeChat groups and apps [4][6]. - The regulatory body has identified that some gold trading businesses have been operating under the guise of physical gold transactions while actually engaging in futures-like trading activities [4][6]. - The recent increase in gold price volatility has led to the exposure of risks associated with these trading models, prompting a stricter regulatory approach [3][6]. Group 2: Market Practices - Some gold pricing platforms have faced significant repayment difficulties, with reports indicating that the Jie Wo Rui platform has encountered large-scale repayment issues related to gold pricing transactions [3][5]. - The pre-pricing trading mechanism allows investors to lock in gold prices with a small deposit, leading to high leverage trading, which has attracted many inexperienced investors [5][6]. - The practice of using social media to create a false trading atmosphere has been noted, where platforms lure ordinary investors into high-risk trading activities [3][5]. Group 3: Legal Implications - The regulatory notice marks a clear distinction in the classification of these trading activities, indicating a shift towards recognizing their illegal nature [6][7]. - Legal experts predict that regulatory measures will focus on administrative actions against businesses engaging in pre-pricing and financing activities related to precious metals [7]. - Criminal penalties may be imposed on entities that operate with the intent to defraud investors, particularly those that cause significant financial losses or public unrest [7].

Core Viewpoint - The Shenzhen Municipal Financial Management Bureau has issued a public notice prohibiting illegal gold trading activities, including gold price reservation trading, leveraged trading, and deferred trading, as well as illegal fundraising activities disguised as gold custody, leasing, and repurchase with promises of fixed returns [1][2][3] Group 1: Regulatory Actions - The notice explicitly states that enterprises are not allowed to engage in illegal gold trading activities through various online platforms, including WeChat groups and apps, under the guise of gold recovery and price reservation [2][3] - The regulatory body has clarified the illegal nature of these activities, marking a shift towards stricter oversight of gold price reservation trading and related financial activities [5][6] Group 2: Market Practices - Some gold traders in Shenzhen have been found to operate under the pretense of gold trading while actually engaging in futures-like price reservation trading, allowing investors to lock in gold prices with minimal deposits [2][5] - The recent volatility in gold prices has exposed significant risks associated with these trading models, leading to difficulties in repayment for several gold price reservation platforms [1][3] Group 3: Legal Implications - The regulatory framework will focus on two main areas: price reservation trading (futures-like activities) and financing activities based on gold, both of which exhibit strong financial characteristics [6] - Violations of these regulations may result in the revocation of business licenses and administrative penalties for responsible parties, with potential criminal charges for entities engaging in fraudulent practices [6]