Silver: China Seeks to Quell Rumors it’s Causing Squeeze

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Main Text:

Recently, prices of certain industrial metals, particularly silver, have experienced abnormal fluctuations. China is the world’s second-largest silver-producing country, and current industrial silver usage is basically stable. However, excessive speculation and artificial hoarding behaviors are affecting the stability of the real economy’s industrial supply chain. To ensure the security of industrial silver supply and maintain fair market order, in accordance with Article 14 of the Price Law of the People’s Republic of China and Article 43 of the Regulations on the Administration of Futures Trading, the following notice is hereby issued:

I. Strict Prohibition on Hoarding and Malicious Speculation

Enterprises and institutions must strictly comply with laws and regulations such as the Price Law and Anti-Monopoly Law, and shall not engage in the following behaviors:

Hoarding spot goods without justifiable reasons, artificially creating market shortages;

Using leveraged funds to manipulate futures prices, amplifying market risks;

Spreading false information to induce irrational trading.

II. Strengthening Supply Chain and Responsibility Implementation

Production enterprises must prioritize meeting silver demand in the industrial sector and fulfill supply according to contracts;

Trading enterprises must disclose inventory and flow directions publicly, accepting social supervision;

Financial institutions must strictly control speculative financing in precious metals to prevent leverage risks.

III. Strengthening Supervision and Punishment for Violations

Market regulatory departments will jointly investigate abnormal transactions and impose maximum penalties for behaviors such as price gouging or collusive price increases;

Exchanges will dynamically adjust margin ratios and price limit boards, and when necessary, restrict new positions to curb excessive speculation;

Establish a green channel for industrial silver-using enterprises to ensure the supply of raw materials for the real economy.

IV. For suspected violations, real-name reports can be submitted via the platform URL. 

I. Scope of Matters Accepted by the Discipline Inspection and Supervision Reporting Website:

1. Reports and accusations regarding violations of Party discipline by Party organizations or Party members, including violations of political discipline, organizational discipline, integrity discipline, mass discipline, work discipline, and life discipline.

2. Reports and accusations regarding supervisory subjects (the six categories of public officials as stipulated in the Supervision Law, same below) who fail to perform their duties in accordance with the law; who violate regulations on the impartial use of power, clean governance, professional integrity, or moral conduct; or who are suspected of duty-related violations or crimes such as embezzlement and bribery, abuse of power, dereliction of duty, rent-seeking, interest transfer, favoritism and fraud, or waste of state assets.

3. Appeals filed by Party members who disagree with Party disciplinary sanctions or other handling decisions made by discipline inspection authorities.

4. Appeals filed by supervisory subjects who disagree with handling decisions involving themselves made by supervisory authorities; and appeals filed by investigated persons or their close relatives regarding acts by supervisory authorities or their staff that violate laws or regulations or infringe upon the lawful rights and interests of the investigated person.

5. Opinions and suggestions regarding Party conduct and integrity building and anti-corruption work. Please click here.

II. In accordance with the Rules on the Handling of Reports and Accusations by Discipline Inspection and Supervision Authorities, the Regulations of the Communist Party of China on the Handling of Accusations and Appeals by Discipline Inspection Authorities, and the Supervision Law of the People’s Republic of China, persons who submit reports, accusations, or appeals must be responsible for the真实性 (truthfulness) of the facts they report, accuse, or appeal. When accepting investigations or inquiries, they shall truthfully provide information and evidence. Any act of false accusation or fabrication of evidence shall result in disciplinary and legal liability. View details.

III. In accordance with the principle of “graded responsibility,” please select the appropriate reporting website based on the location and administrative rank of the person being reported.

IV. Discipline inspection and supervision authorities encourage实名举报 (reporting under real names). Please provide your real name, identification number, and accurate contact information.

V. Please refer to the sample format for reporting materials when submitting issues.

VI. For matters related to international anti-corruption efforts involving the pursuit of fugitives and recovery of illicit assets, please contact us

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