At the Shanghai Gold Exchange, trading volume increased 43%, to 5, 014.5 tons, in the first 10 months of 2010, exchange Chairman Shen Xiangrong said, according to Xinhua.

WSJ: China Buys In to Gold's Allure

ZeroHedge notes that the most recent hike comes two weeks after a 22% margin hike on gold by the CME and two days after the Shanghai Gold Exchange raised them by 26%.

FORBES: Margins On Gold Hiked 27% As Bullion Tumbles More Than $100 In A Day

This ended in October when a gold exchange opened in Shanghai where producers and wholesalers trade directly with one another.

ECONOMIST: Chinese reforms could lift gold's fortunes