Major Chinese commercial banks are rapidly winding down retail precious-metals trading on margin as wild international price swings expose everyday investors to severe financial risks. Led by the Industrial and Commercial Bank of China (ICBC), the world’s largest lender by assets, financial institutions are phasing out agency services that allow individual clients to speculate on gold and silver contracts without owning the physical metal.
ICBC and Major Lenders Cease Shanghai Gold Exchange Agency Services
ICBC announced that it will cease providing agency services for individual clients’ competitive bidding on the Shanghai Gold Exchange (SGE) at the end of the clearing session on 24th July 2026. The phased withdrawal covers both spot physical and deferred delivery contracts across mobile banking, online banking, and branch counters, affecting popular products including Au99.99, Au100g, Au99.95, PGC30g, Au(T+D), mAu(T+D), Ag(T+D), Au(T+N1), and Au(T+N2). ICBC instructed clients with open positions to complete sales, close positions, or arrange physical delivery before the deadline.
This coordinated retreat follows similar actions across China’s banking sector. The Postal Savings Bank of China ended its service earlier this year on 13th March, and Ping An Bank began gradually suspending its offerings on 1st April, disabling spot contract trading permissions after market close on 30th June. China Everbright Bank announced on Friday that it would phase out retail precious-metals trading on margin for gold and silver after October 19, following a comparable notice issued by Shanghai Pudong Development Bank earlier in the month. China Guangfa Bank set a final deadline of 15:30 on 25th June for client-initiated actions before forcibly closing remaining positions.
Managing Extreme Volatility and Margin Risks
The systematic wind-down reflects heightened volatility across global precious-metals markets. Spot prices for gold and silver have experienced sharp whipsaws, prompting institutions to raise margin requirements for deferred contracts, with certain requirements climbing as high as 140%. Products traded on margin such as Au(T+D) and Ag(T+D) magnify both gains and losses, leaving retail clients—who often lack professional hedging tools or expertise—vulnerable to extreme market swings.
While commercial banks act strictly as agents rather than trading on their own accounts, the entire operational lifecycle runs through banking infrastructure. Lenders manage client onboarding, fund transfers, margining, and risk disclosures. Consequently, extreme market movements leave institutions facing substantial responsibilities regarding suitability assessments, customer complaints, and reputational risk, ultimately driving the shift from merely restricting new positions to fully liquidating existing accounts.