As gold investing gains popularity in China, more people are using cash services from credit cards to purchase gold. Chinese commercial banks are putting brakes on gold transactions using cash services to curb the investment craze.

An employee is organizing gold products at a jewelry wholesale store in Jongno-gu, Seoul. Recently in China, there are even cases of using credit card cash services for gold investments, prompting banks to warn about investment overheating./Courtesy of News1

The China Economic Daily reported on the 11th, "As gold prices rise, they have set multiple records," adding, "Some investors dreaming of high returns are trading gold using cash services from credit cards or consumer loans to engage in transaction arbitrage."

Chinese banks designate the act of credit card holders using cash services to buy and sell gold as a violation of regulations. They are warning users that this involves financial risks.

They are also warning that if gold prices fall and losses occur, there are risks of interest, fees, and credit delinquency records. The banks added that they have the right to reduce credit limits or demand early repayments regarding such investment behaviors.

The Economic Daily noted, "In response to indiscriminate investment actions, several banks have recently issued announcements to prevent credit card funds from entering investment areas such as gold and stocks," and "violators will face control measures."