Multiple Factors Drive Some Banks to Tighten Personal Precious Metals Business

Reprinted from: Securities Daily

Recently, several banks have been tightening or withdrawing from the personal precious metals business at the Shanghai Gold Exchange (hereinafter referred to as “SGE”). The measures include closing trading channels, increasing margin requirements, and clearing existing clients.

On March 10, Ping An Bank announced that after the close on March 11, the bank will adjust the margin ratio for SGE precious metals trading contracts in Au (T+D), mAu (T+D), and Ag (T+D) to 100%. Since November 2021, the bank has gradually suspended spot real trading and deferred delivery, and starting from April 1, 2026, it will gradually close related business permissions and exit this business as appropriate. For existing clients, the bank reminds them to log in to the “Jujinbao” app or visit branches before March 31 to close positions, sell inventory, transfer funds, or terminate services.

On the same day, Beijing Rural Commercial Bank also announced that from March 11 (inclusive), due to system optimization, it will suspend gold savings withdrawal and SGE standard gold business; however, gold savings withdrawal for Cai Bai Phoenix Gold and New Year Gold Bars will not be affected.

On February 11, Postal Savings Bank announced that from now until March 13, 2026, at 0:00, it will cease acting as an agent for SGE personal precious metals business. Clients with open positions or inventory can independently sell or close positions via mobile banking until that time. If operations are not completed by then, the bank will enforce forced liquidation or inventory sale after the market close on March 13.

On February 3, Industrial Bank also announced that due to business development needs, it will close the personal online banking trading channels for SGE precious metals transactions after February 14, 2026. Trading channels such as counters and mobile banking will remain open.

In December last year, ICBC strengthened management of personal precious metals trading. For clients with no positions, no inventory, and no debts but with remaining funds in their margin accounts, starting December 19, 2022, the bank will batch transfer the margin account balances to the linked settlement accounts and disable related business functions. CITIC Bank, from November 7, 2025, will also clear long-inactive accounts (only available funds, no positions) for SGE personal trading.

Xue Hongyan, a special researcher at the Shanghai Finance and Law Research Institute, told reporters that the core drivers pushing the industry to tighten this business are the combined effects of market risk, business cost-effectiveness, and regulatory compliance requirements.

Regarding market risk, recent significant volatility in precious metal prices, coupled with relatively weak risk control capabilities among individual investors, highlights the risk of margin calls in extreme market conditions. As a member of SGE, banks bear the responsibility for clearing and settlement advances, with increasing risk exposure and dispute costs.

From a business value perspective, the limited commission income from agency precious metals trading, combined with the substantial resources banks must invest in risk control and compliance management, makes the business less attractive. After the implementation of new tax policies for gold trading in November 2025, banks face additional reporting obligations, further compressing profit margins and prompting reassessment of the business’s value.

Yang Haiping, a researcher at the Shanghai Financial and Legal Research Institute, told reporters that given the current trend of gold prices, with high volatility likely to continue, banks withdrawing from SGE personal precious metals agency services will become a long-term industry trend.

Xue Hongyan believes that future personal precious metals business will feature three main characteristics: a continuous reduction and eventual elimination of trading leverage; high margin requirements becoming the norm; a shift of focus from trading channels to asset allocation services, guiding investors toward rational long-term investment; and ongoing upgrades in customer suitability management with stricter risk assessments.

Editor: Zhang Yao

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