Chinese banks restrict retail gold trading amid price volatility

Several of China’s biggest 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, are tightening rules on retail precious‑metal trading. The banks will suspend new account openings for gold and silver trading, shut down certain retail services, close inactive accounts and raise margin requirements for existing customers.

ICBC announced it will cease intermediary services that let individuals trade on the Shanghai Gold Exchange after the July 24 settlement, urging clients to sell or close positions beforehand. Construction Bank issued a similar notice, and other banks have warned of potential forced liquidation of open positions. Margin ratios for deferred contracts have been lifted to as high as 140% at some institutions.

The crackdown follows sharp reversals in gold prices, with spot gold falling below US$4,000 per ounce after a multi‑year rally, and heightened silver volatility. Regulators cite risk‑management concerns and aim to curb speculative retail exposure, while the People’s Bank of China continues to build its official gold reserves.