China banks end retail leveraged gold trading

On 24 July 2026 Chinese banks told retail clients to close or liquidate leveraged gold and silver positions linked to the Shanghai Gold Exchange. The Industrial and Commercial Bank of China, Postal Savings Bank of China, Ping An Bank, China Guangfa Bank and China Construction Bank issued notices in June, giving investors a deadline to sell, close the contract or take physical delivery.

The move stops margin‑ and deferred‑settlement paper products that let customers trade with borrowed funds, but it does not affect spot bullion, gold‑accumulation plans, physically backed ETFs or the People's Bank of China’s gold‑reserve strategy. Analysts say the action is risk management after gold prices peaked near US$5,600 per ounce in January and then fell about 30 % to just above US$4,000, echoing earlier crackdowns on retail leverage in property, equities and crypto.