Multiple Factors Drive Some Banks to Tighten Personal Precious Metals Business

Recently, several banks have been tightening or withdrawing from the personal precious metals business at the Shanghai Gold Exchange (hereinafter referred to as “SGE”). These adjustments 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 trading and deferred delivery of spot transactions, and starting 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 business agreements.

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

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

On February 3, Industrial Bank announced that, due to business development needs, it will close the personal online banking channels for SGE precious metals trading after February 14, 2026. Transactions at branches and via mobile banking will remain open.

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

Xue Hongyan, a special researcher at the Shanghai Finance and Law Research Institute, told Securities Daily 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 metals prices, coupled with relatively weak risk control capabilities among individual investors, has heightened the risk of margin calls in extreme market conditions. As a member of the SGE, banks bear the responsibility for clearing and settlement advances, with increasing risk exposure and dispute costs.

From a business value perspective, the commission income from agency precious metals trading is limited, yet banks must invest substantial resources in risk control and compliance management. 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 Securities Daily that given the current trend of gold prices, high volatility is expected to continue, making the withdrawal of banks from personal precious metals agency business at the SGE 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.