In a move aimed at mitigating business risks and safeguarding investor interests, Hua Xia Bank Co.,Limited has announced the termination of its agency services for individual precious metals trading on the Shanghai Gold Exchange.
The bank stated that the functionality for these agency trading services will be deactivated following the market close at 3:30 PM on July 24. The affected contract types include Au99.99, Au100g, Au(T+D), and Ag(T+D), among others.
Once the service is discontinued, clients holding related spot inventory or open positions will face restrictions on closing positions, selling, or taking delivery. The bank advises customers to promptly sell or close out their positions and withdraw funds via its mobile banking or online banking platforms.
For any remaining open positions or spot holdings after the shutdown, the bank will, in accordance with the terms of its agency agreement for individual precious metals trading, conduct forced liquidation at an opportune time. The proceeds from this forced liquidation will be automatically transferred to the client's designated account linked to the service.
Given the significant volatility in precious metals markets, the bank cautions that the price achieved during forced liquidation may differ from client expectations. It strongly recommends clients take the initiative to sell or close positions at their earliest convenience.
The agency agreement between clients and Hua Xia Bank Co.,Limited for these services will be terminated once the aforementioned procedures are completed.
The bank also noted that for clients who cannot be contacted due to abnormal communication channels, changed contact information, or other reasons preventing timely action, it will proceed with the same forced liquidation process at the specified time.
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