SHANGHAI — Several of China’s largest banks are tightening restrictions on retail precious metals trading, scaling back services for individual investors as authorities seek to curb speculative activity following sharp swings in gold prices.
The latest measures include suspending new account openings for precious metals trading, shutting down certain retail trading services, closing inactive accounts, and increasing margin requirements for existing clients. The restrictions affect major lenders including the Industrial and Commercial Bank of China (ICBC), Postal Savings Bank of China, China Construction Bank, Ping An Bank, and China Guangfa Bank.
ICBC, China’s largest lender by assets, said it will discontinue intermediary services that allow individuals to trade precious metals through the Shanghai Gold Exchange from July 24, marking one of the most significant steps in the sector-wide clampdown.
The move follows heightened volatility in gold prices after a multi-year rally reversed in recent months, prompting regulators and financial institutions to limit retail exposure to leveraged precious metals products. Market observers say the measures are intended to reduce financial risks for individual investors rather than curb demand for physical gold.
Despite the tighter rules on retail trading, China’s central bank continues to increase its official gold reserves, underscoring the distinction between government reserve management and speculative retail investment. The People’s Bank of China has extended its gold-buying streak in recent months as part of its reserve diversification strategy.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök