Multiple reports say China is taking steps to reduce retail participation in “paper gold” products and to encourage shifts toward physical bullion. The coverage attributes the change to policy direction linked to the banking system’s build-out of offshore storage and settlement capabilities. Analysts cited by the reports, including Jefferies’ Christopher Wood, say banks are expanding access to offshore vaulting and related cross-border settlement infrastructure, which makes physical bullion arrangements more feasible for market participants.
The reports also frame the move as part of a broader market overhaul that targets how gold is held and transacted, rather than focusing solely on price or trading volumes. By moving away from retail paper gold, regulators appear to be altering the structure of retail gold exposure, potentially affecting which instruments investors can use and how those positions are ultimately backed.
While the sources describe the direction of travel and the supporting infrastructure, they do not provide detailed timelines or the full scope of the measures in the excerpts provided.
