Dec. 28 -- The People's Bank of China (PBOC), China's central bank, announced Tuesday that it is banning local regions, institutions or individuals from setting up gold exchanges apart from the existing Shanghai Gold Exchange and Shanghai Futures Exchange.
The country also bans the establishment of any gold trading platforms in other exchanges, a statement on the PBOC website said.
The statement said the country has ordered a cease to the building of any new gold exchanges or trading platforms. Those which have opened for business must cease operations.
The ban came amid bigger risks in gold trading after some local regions, institutions and individuals grew enthusiastic in setting up gold exchanges and trading platforms in recent years as gold prices soared, which led to a surge of illegal practices due to inadequate management, the statement said.
It added the central bank will work with the Shanghai Gold Exchange and Shanghai Futures Exchange to boost the healthy development of the country's gold trading market.