China is going to implement new rules for non SGE & SHFE (off-exchange) Gold and Silver trading.

In a significant shift for the precious metals market, China is preparing to introduce stringent new regulations targeting off-exchange gold and silver trading outside the Shanghai Gold Exchange (SGE) and Shanghai Futures Exchange (SHFE). The rules, as outlined in a recent statement, aim to curb speculative practices and enforce physical delivery standards, potentially reshaping trading dynamics in the world's largest consumer of gold and silver.

According to Eric Yeung, a prominent commentator on financial markets who posts under the handle @KingKong9888 on X (formerly Twitter), the first key change prohibits off-exchange leveraged derivatives. Yeung specifically described these as "leveraged paper longs of leveraged paper naked shorts," highlighting the intolerance for such high-risk, non-physical trading instruments that have proliferated outside official exchanges.

The second pillar of the new rules mandates the enforcement of physical gold and silver deliveries. This requirement ensures that trades result in actual metal handover rather than settling in cash or paper equivalents, addressing long-standing concerns over delivery shortfalls and market manipulation in unofficial channels.

Yeung shared these details in a post on February 13, 2026, accompanied by an image further illustrating the announcement. His statement reads: "China is going to implement new rules for non SGE & SHFE (off-exchange) Gold and Silver trading. 1) Off-exchange leveraged derivatives (leveraged paper longs of leveraged paper naked shorts) will no longer be tolerated. 2) Physical Gold and Silver deliveries will be enforced."

The move comes amid China's dominant role in global gold and silver demand, where off-exchange trading has often bypassed regulatory oversight. By targeting non-SGE and non-SHFE activities, authorities appear intent on channeling all significant transactions through vetted platforms, promoting transparency and reducing systemic risks.

Eric Yeung's update, which included a linked image (pic.twitter.com/e9H1JshXFL), has sparked discussions among traders and analysts monitoring precious metals markets. As of February 15, 2026, the announcement underscores Beijing's ongoing efforts to assert greater control over commodity trading amid volatile global conditions.