Urging Swift Account Closures and Implementing Dynamic Adjustments! Banks Collectively Tighten Risk Control Lines in Gold Business

Source: Beijing Business Daily

Author: Meng Fanxia, Zhou Yili

Influenced by expectations of Federal Reserve rate cuts, geopolitical factors, and US dollar credit, international gold prices are repeatedly fluctuating around the $5,000 mark. As gold prices oscillate, topics such as “banks are increasingly difficult to buy gold bars,” “gold prices falling but unable to buy,” and “gold sales start at 9:00, sold out at 9:01” have trended on social media. Behind these topics are measures by multiple banks to tighten their precious metals business risk controls. Analysts point out that the overall adjustment of banks’ precious metals businesses involves divesting high-risk brokerage activities, retaining low-risk operations aligned with their core strategies, and raising thresholds and screening clients to make remaining business more compatible with their risk tolerance and regulatory requirements.

Banks Issue Notices to Urge Contract Terminations

On March 17, Minsheng Bank announced that due to significant volatility in the precious metals market, it is reminding personal clients who have not yet terminated their precious metals accounts to promptly close positions, sell inventory, withdraw funds, and cancel contracts to prevent market risks. The bank will continue to promote the termination and account closure of agency precious metals services.

Specifically, this situation stems from Minsheng Bank’s announcements on June 21, 2022, and January 17, 2023, titled “Notice on Adjusting Trading Permissions for Agency Personal Precious Metals Spot and Deferred Business” and “Notice on Adjustments to Agency Precious Metals Business.” According to these notices, the bank closed the buy and open position functions for agency personal precious metals spot and deferred trading on the afternoon of July 22, 2022; on February 1, 2023, it began terminating agency accounts for clients with no inventory or deferred positions, with client margins automatically transferred out. This re-emphasizes the bank’s push for clients who have not yet closed their positions or terminated their accounts to do so quickly.

Similarly, on March 17, Postal Savings Bank also issued a notice titled “Suspension of Agency Personal Precious Metals Trading at Shanghai Gold Exchange,” stating that if clients do not complete operations by March 27, 2026, 0:00, the bank will enforce forced liquidation or inventory sell-out to protect account security and rights. Funds from forced sales will be automatically transferred to the client’s settlement account linked to the agency gold account.

In addition to these banks, Ping An Bank and Industrial Bank previously announced adjustments to their agency personal precious metals trading services at the Shanghai Gold Exchange. Ping An Bank plans to gradually shut down related permissions and exit the business starting April 1, 2026. For existing clients, the bank advises logging into the “Jujinbao” app or visiting branches before March 31 to close positions, sell inventory, transfer funds, and terminate services.

Industrial Bank will close its agency trading channels for personal gold transactions at the Shanghai Gold Exchange after February 14, 2026, with in-branch and mobile banking services remaining operational. It also reminds clients who have not yet terminated their accounts to do so promptly.

Jiang Shu, Chief Analyst at Shanghai Xirang Industrial Co., Ltd., pointed out that the contraction of commercial banks’ agency precious metals business is driven not only by market factors but also by regulatory guidance, industry risk events, and the banks’ own characteristics. “This contraction trend is not directly related to gold price fluctuations,” Jiang said, explaining that the domestic commercial banks’ involvement in agency precious metals was rooted in specific historical contexts.

In November 2007, the People’s Bank of China approved the Shanghai Gold Exchange to offer gold spot deferred delivery products through commercial banks to individual clients. In early 2009, Industrial Bank launched such products nationwide, becoming the first domestic bank to do so. Subsequently, several banks joined.

However, industry risk events emerged later, prompting regulators to clarify that the core focus of commercial banks should be prudent management, avoiding cross-sector involvement in bulk commodity brokerage services to prevent depositors from suffering losses due to high-risk investments. This has become a key factor accelerating the withdrawal of banks from precious metals businesses. Jiang further noted that over the past five years, banks’ agency precious metals businesses have been in a strategic decline phase.

Wu Zewei, a special researcher at Su Commercial Bank, also believes that this phenomenon is mainly driven by the combined effects of market risk, business cost-effectiveness, and regulatory compliance. Gold prices are highly volatile, and leveraged deferred trading carries significant risk of margin calls. Personal investors generally have weaker risk control capabilities, and banks, as clearing members, bear the responsibility of settlement advances, increasing risk exposure. From a business value perspective, agency trading generates limited commissions but requires substantial resources for risk control and compliance, squeezing profit margins. Additionally, increasing regulatory requirements for investor protection mean banks must invest more in investor education and risk monitoring. The imbalance between returns and risks prompts banks to reassess the value of these businesses and proactively tighten their risk controls.

Accumulated Gold Business May Relax with Market Fluctuations

Besides directly withdrawing existing clients and exiting related agency services, many banks are also tightening their accumulated gold business through quota management and dynamic spread adjustments, further strengthening risk controls.

For example, China Construction Bank announced that starting March 4, it will implement dynamic trading limits for its CCB Gold (including Easy Save Gold). Industrial and Commercial Bank of China stated that from February 7, 2026, on weekends and public holidays, it will impose limits on the Yu Yi Gold accumulated business, including daily caps on total or single-client deposits and redemptions, as well as per-transaction limits, with dynamic adjustments. Jinshang Bank also indicated that in case of sustained market volatility, it will adjust gold account trading spreads accordingly.

Jiang Shu believes that accumulated gold is one of the few precious metals-related services still offered to individual clients and is unlikely to be completely shut down. However, due to increased gold price volatility over the past six months, this business is currently undergoing a clear tightening phase. This adjustment is a temporary risk control measure responding to short-term market conditions and is expected to loosen as market trends stabilize.

“Bank tightening of accumulated gold is also part of the overall risk management strategy for the precious metals market, forming a unified industry risk control rhythm,” Jiang added. The current direction of bank adjustments mainly involves raising investment thresholds and screening for quality clients, setting higher entry standards to reduce disputes caused by small investors chasing short-term gains, rather than completely stopping the business. Essentially, the overall adjustment of banks’ precious metals activities aims to divest high-risk brokerage operations, retain low-risk core services, and improve risk compatibility through higher thresholds and client screening.

Wu Zewei predicts that future personal gold businesses will see a gradual reduction in leverage, a shift from trading channels to asset allocation services, and increased client suitability management, guiding investors toward long-term asset allocation rather than short-term speculation.

What impact will the intensive adjustments by banks have on ordinary investors? Wu Zewei states that the main effects include reduced trading flexibility, higher entry standards, and the unavailability of leveraged trading tools. For existing clients, it is crucial to closely follow bank announcements and complete position closures, fund withdrawals, and account terminations before deadlines.

He also recommends that investors who view gold as part of their long-term asset allocation consider physical gold, accumulated gold, or gold ETFs, and carefully assess their risk tolerance, avoiding using non-own funds for gold investments. Given the recent short-term rapid rise and subsequent volatility in gold prices, investors should be aware of these risks.