China to ban unauthorized gold exchanges

China's central bank has ordered all gold HONG KONG (MarketWatch) -- China's central bank has ordered all gold exchanges, apart from the official exchange in Shanghai, to cease operations, according to a statement Tuesday. Unauthorized gold exchanges and related trading platforms have sprung up around the country as bullion prices soared, often operated by institutions or individuals, according to the state-run Xinhua news agency, which cited a statement posted on the People's Bank of China website. The statement cited inadequate management, irregular activities and evidence of illegal activity as risks that were behind its decision to impose the ban. The Pboc reportedly said it plans to work with the Shanghai Gold Exchange and the Shanghai Futures Exchange to help foster the development of the nation's gold market.