SHANGHAI (Reuters) – Chinese language regulators and main banks are speeding to curb treasured steel buying and selling by home traders to mood hypothesis that some worry may trigger a repeat of this yr’s oil buying and selling mishaps. FILE PHOTO: A gross sales assistant packs a 1000 gram gold bar for a buyer as an funding at Caibai Jewellery retailer, in Beijing, China, August 6, 2019. REUTERS/Jason LeeThe scramble to restrict dangers comes as gold costs hit file highs this week, spurred by traders trying to find secure haven belongings in markets rattled by worries of rising coronavirus circumstances, lofty fairness valuations and a falling U.S. greenback. A deepening rift between the US and China has additionally change into an element drawing mainland traders to gold. Industrial and Industrial Bank of China (ICBC), the nation’s greatest lender, stated on Wednesday it will bar its shoppers from opening new buying and selling positions for platinum, palladium and index merchandise linked to treasured steel from Friday. That directive, in line with the lender’s customer support division, was in response to “violent price volatility” and “the need to control risks.” Agricultural Bank of China stated it had lately suspended new companies associated to gold, whereas Bank of China stated it halted new account openings for platinum and palladium buying and selling. The Shanghai Gold Trade stated on Tuesday gold and silver holdings have been excessive, and it will take risk-control measures if warranted to guard traders. The Shanghai Futures Trade, the place gold and silver futures contracts are traded, additionally urged its members to strengthen risk-management efforts and make investments rationally. “Gold remains a niche investment in China due to limited investment channels,” stated Frank Hao, an analyst at Hywin Wealth Administration in Shanghai. “Investors mainly rely on purchasing paper gold products at commercial banks as a way to counteract risks.” Chinese language traders are additionally actively buying and selling gold ETFs, whose turnover has jumped in latest weeks. Huaan Gold ETF, Asia’s greatest gold exchange-traded fund, has seen its belongings underneath administration soar greater than 68% to over 11.eight billion yuan ($1.69 billion) since end-2019. Regulators are aware of dangers after traders have been caught off-guard in late April when Bank of China settled a crude oil futures buying and selling product often called Yuan You Bao at minus $37.63 per barrel, following a historic slide in oil costs into unfavourable territory. The bank subsequently agreed to settle with greater than half its prospects dealing with losses, probably taking a 6 billion to 7 billion yuan hit. Hao stated any additional positive aspects in gold may spur extra hypothesis, regardless of regulatory makes an attempt to tamp it down. “If the gold price rises past $2,000, some more hot money will certainly flow into the market, and some investors will divert their stock investments to gold,” he stated. ($1 = 7.0010 Chinese language yuan) Reporting by Andrew Galbraith, Winni Zhou and Samuel Shen in Shanghai and Arpan Varghese in Bangalore; Enhancing by Vidya Ranganathan and Jacqueline WongOur Requirements:The Thomson Reuters Belief Ideas.