Shenzhen authorities have issued a sweeping public notice targeting a raft of illegal and misleading gold-related activities, signalling a tougher line against tech-enabled financial malpractice. The notice explicitly forbids online pre‑priced gold trading, leveraged and deferred trading that mimic futures without real physical delivery, schemes promising fixed returns through gold custody or lease arrangements, and commissioned investment services that divert buyers from taking possession of physical metal.
The regulation reaches beyond traders to platforms and promoters: live-stream sales, WeChat groups, mini-programmes, apps and websites may not be used to market or facilitate unauthorised gold transactions. The city also bans the development, sale or technical support of illegal gold‑trading software, and forbids merchants from falsely claiming affiliation with the Shanghai Gold Exchange or using absolutist promotional language such as "gold will soar" or "buy gold and make big money." Mixing non‑precious materials into products, hidden fees and other forms of fraud are likewise prohibited.
Shenzhen cites a broad legal foundation for the crackdown, including the Criminal Law, the People’s Bank of China Law, the Futures and Derivatives Law, the Anti‑Money Laundering Law, the Gold and Silver Management Regulations and national rules on preventing illegal fundraising. The notice warns that violations could trigger regulatory penalties and criminal investigations for offences ranging from illegal operation and contract fraud to pyramid schemes, money laundering and illegal public deposit taking.
Regulators set out clear boundaries for legitimate participation in the gold market: qualified retail investors may use authorised channels such as gold ETFs and futures, while individuals can buy physical bullion through banks or accredited shops and subscribe to bank gold‑accumulation products. Financial institutions and non‑bank payment providers must obtain required approvals, file with supervisors where mandated, adhere to large‑transaction and suspicious‑activity reporting obligations, and must not provide services to merchants engaged in illegal operations.
The move matters because Shenzhen is both a major commercial centre and a global tech hub where fintech entrepreneurship, social media commerce and payment innovations converge. In recent years these capabilities have been harnessed to create grey‑area gold products that sit between commodities trading and retail finance; regulators now view such hybrid offerings as a vector for fraud and systemic risk. By targeting the distribution channels — apps, mini‑programmes and live streams — the city is attempting to choke off rapid, viral marketing that has fuelled speculative and often fraudulent schemes.
For the wider market the announcement is likely to produce a short‑term dampening of grey‑market activity and increased compliance costs for fintech firms and payment platforms. That may push some operators to legitimate their offerings or to migrate services offshore or into other digital asset forms, such as cryptocurrencies. More importantly, the notice is a signal that local regulators are aligning enforcement with national priorities: protecting consumers, preventing illicit capital flows and preserving financial stability in a fast‑evolving digital economy.