Governments hate competition. Due to record breaking gold prices this year, more unauthorized gold exchanges have been created to capitalize on gold fever. However, China regulators are not happy about the competition.
A joint statement issued by People’s Bank of China, the Ministry of Public Security and other regulators recently announced, “No local authority, institution or individual is allowed to set up gold exchanges.” In essence, gold exchanges in China, except for two in Shanghai are to be banned. The joint statement also explained that the Shanghai Gold Exchange and the Shanghai Futures Exchange are sufficient enough to meet domestic investor demand for spot gold and futures trading.

Originally from The Market Oracle