China halts establishment of unauthorized gold exchanges

China’s central bank, the People’s Bank of China (PBoC), announced on Tuesday that it is halting local regions, institutions or individuals from setting up new gold exchanges or gold trading platforms in all exchanges apart from existing Shanghai Gold Exchange and Shanghai Futures Exchange, state media reported. Beijing also ordered a cease to the operations of the already-opened gold exchanges or the exchanges under construction. The ban came as unauthorized gold exchanges and related trading platforms which were operated by local regions or private institutions have sprung up across China amid soaring bullion prices, causing big risks and a surge of illegal practices due to inadequate regulation, according to a statement on the PBoC website. China central bank said it will work with the two Shanghai gold exchanges to foster a healthy development of the nation’s gold trading market.