Precious metals like gold and silver have experienced significant price swings, prompting further action from major banks regarding their related services.
Industrial and Commercial Bank of China Ltd (ICBC) announced on the 24th that, in accordance with precious metals risk management and business requirements, it will cease acting as an agent for personal precious metals spot trading on the Shanghai Gold Exchange (SGE).
In recent years, the banking sector has progressively tightened and even wound down agency services for personal SGE precious metals trading. The adjustments have escalated from initial risk warnings and halting new account openings to orderly exits for existing clients, culminating now in the complete termination of these services. What impact will these bank adjustments have on investors?
Multiple Banks Cease Agency Services for Personal Precious Metals
According to the announcement, effective from the close of business on Friday, July 24, 2026, ICBC will stop its agency services for personal precious metals spot trading on the SGE. The affected contract types include Au99.99, Au100g, Au99.95, PGC30g, Au(T+D), mAu(T+D), Ag(T+D), Au(T+N1), and Au(T+N2).
The announcement states that after the settlement on July 24, 2026, ICBC will close trading permissions for this agency business across channels including mobile banking, online banking, and branch counters at an appropriate time. Once closed, clients with open positions will face restrictions on closing, selling, or taking delivery of their holdings.
ICBC advised existing clients with positions to promptly use mobile banking, online banking, or branch counters to sell, close positions, or take delivery of their various spot trading contracts and withdraw any remaining funds from their margin accounts. For clients with no positions, inventory, or debts, the bank will subsequently process batch withdrawals of remaining margin account funds on their behalf.
Regarding the reason for the termination, a customer service representative from ICBC indicated that, given the numerous unstable factors in the current precious metals market and in line with relevant policy requirements, the Shanghai Gold Exchange has decided to completely shut down trading services for individual clients. "As a member of the Shanghai Gold Exchange, our bank is ceasing this business in accordance with the SGE's relevant rules."
ICBC is not the first bank to completely halt agency services for SGE personal precious metals spot trading.
On February 11, Postal Savings Bank of China (PSBC) announced it would stop its agency services for SGE personal precious metals business from that date until 00:00 on March 13, 2026.
On March 17, PSBC formally issued a termination notice, stating the affected business types included Au99.99, Au100g, Au99.95, PGC30g, Au(T+D), mAu(T+D), Ag(T+D), Au(T+N1), Au(T+N2), and others. Clients holding positions or physical inventory in these contracts were urged to sell or close their positions via mobile banking as soon as possible. If not completed by 00:00 on March 27, 2026, the bank would execute forced position closures or inventory sales on the relevant accounts.
On March 10, Ping An Bank announced that to further mitigate market risks and protect investor rights, and based on recent international precious metals market conditions and its own risk control requirements, it would adjust its SGE agency personal precious metals trading business. Starting April 1, 2026, it would gradually close related business permissions and exit the business as circumstances dictate.
On June 10, Ping An Bank announced it would close trading permissions (including spot selling) for SGE agency personal precious metals trading business spot contracts (Au99.99 and Au100g) after the market close and settlement on June 30, 2026 (the cut-off date).
On June 22, China Guangfa Bank (CGB) announced that to strengthen risk management and protect investor rights, it plans to completely cease its agency services for SGE personal precious metals trading business by the end of June.
Investors Can Opt for Alternatives Like Gold Accumulation Plans
According to introductions on multiple bank websites, bank agency services for personal client precious metals trading refer to banks, acting as SGE financial members, conducting buying/selling, fund settlement, and physical delivery of precious metals on the SGE on behalf of individual clients based on their instructions.
Since 2026, prices of precious metals like gold and silver have seen sharp volatility. Taking spot gold as an example, it hit a high of $5,598.75 per ounce on January 29, before declining steadily following the outbreak of the US-Iran war. At the time of writing, spot gold had fallen to $4,059.57 per ounce, a drop of nearly 27.5% from its peak.
Dong Ximiao, Chief Researcher at Zhaolian, previously stated in an interview that since the 2020 "Crude Oil Treasure" and other risk incidents, regulatory authorities have continuously tightened controls on banks' financial derivatives businesses. Agency services for personal SGE precious metals trading constitute leveraged derivatives business with violent price fluctuations. Individual investors often lack sufficient risk tolerance, which can easily lead to significant losses.
With banks halting agency personal precious metals services, how can ordinary investors participate in precious metals investments?
China Guangfa Bank indicated that after the business termination, clients can choose alternative products such as gold accumulation plans, gold ETFs, or silver ETFs to continue their precious metals investments.
In Dong Ximiao's view, although high-risk leveraged trading channels for individuals are closing, the banking sector's precious metals business continues to grow rapidly. Banks are actively promoting lower-risk investment products like gold accumulation plans and the sale/repurchase of physical gold bars to meet public demand for gold as a safe-haven and asset allocation tool. The future development space for bank precious metals business remains substantial.
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