Technology
YLG Analyzes Impact of China’s Shift Away from 'Paper Gold'
Major Chinese banks have ceased retail 'Paper Gold' trading services, a move analysts believe will bolster long-term demand for physical gold.
According to a report by Khaosod Online Thailand on July 30, 2026, at least seven major commercial banks in China stopped acting as agents for individual clients to trade precious metal products on the Shanghai Gold Exchange (SGE) as of July 24. This suspension includes 'Paper Gold' products such as spot and deferred gold with leverage, as well as deferred silver and spot platinum contracts.
Ms. Thipa Nawawattanasap, CEO of YLG Bullion and Futures, stated that this policy shift is unlikely to significantly pressure the global market. Instead, she suggests it will accelerate the flow of capital into physical gold bars. This transition is expected to strengthen long-term demand, supported by ongoing purchases from central banks worldwide. YLG maintains its outlook that gold remains in an upward cycle and may reach new long-term highs.
For residents and travelers in Thailand, this development highlights a shift in global precious metal market dynamics. While this change in Chinese banking policy does not directly alter local gold trading regulations in Thailand, it reflects broader trends in how gold is being held and traded internationally. It remains to be confirmed how this shift in Chinese retail access will influence global price volatility in the coming months and whether other major markets will adopt similar restrictions on leveraged precious metal products.
Translated from Thai.
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