Shandong Province Judged “The First Gold Case in China”

• Author: Yin Cong

Shandong Province Higher People’s Court rendered a final judgment recently supporting Industrial and Commercial Bank of China, Jinan Luo Yuan Branch’s action in cancelling Song Ronggui’s 126 transactions of paper gold trading based on the reason of “unjust enrichment.” Song appealed to the Supreme People’s Court for a retrial a month ago.

During the period between June 29 and July 8, 2006, Song Ronggui et al made a profit of more than $21,000,000 through repeatedly buying and selling paper gold at the gold transactions platform managed by the Industrial and Commercial Bank of China. Subsequently, the Bank used the reason of computer system failure to cancel the transactions and to reverse the money.

Song claimed that the transactions took place when the market price of gold was at $160 per gram while he used $145 per gram to buy through a trust and then...