The speculative gold trading channel within the banking system is rapidly narrowing, while gold accumulation businesses continue to expand steadily. Recently, China Everbright Bank announced that it will suspend its individual precious metals agency business for the Shanghai Gold Exchange after October 19, becoming yet another bank to press the exit button this year, following in the footsteps of ICBC, China Construction Bank, Bank of Communications, China Merchants Bank, CITIC Bank, SPD Bank, Guangfa Bank and others. At the same time, multiple banks have stated that physical gold consignment sales and gold accumulation services remain unaffected, and clients can continue precious metals investment through products such as gold accumulation plans, gold ETFs, and silver ETFs. Between the contraction and expansion, banks' gold client-facing businesses are undergoing a structural transition.

Multiple banks tighten precious metals agency operations

Recently, China Everbright Bank issued a notice stating that it will suspend its individual precious metals agency business for the Shanghai Gold Exchange after October 19, covering contract varieties including Au99.99, Au100g, iAu99.99, iAu100g, and Ag(T+D). After the close of clearing on October 19, the bank will close trading permissions for the individual precious metals agency business through mobile banking and online banking channels at a time of its choosing, and clients holding positions will face restrictions on closing and selling operations. China Everbright Bank also provided transition arrangements: clients still holding spot inventory or deferred positions must complete spot sales, deferred position closures, fund transfers, and contract termination before October 19; for clients who have signed agreements but hold no positions, the bank will terminate the agency relationship; for clients with no positions but remaining funds in margin accounts, funds will be returned to their designated bank accounts after termination.

According to a review of industry data, since the beginning of this year, ICBC, China Construction Bank, Bank of Communications, China Merchants Bank, CITIC Bank, SPD Bank, Guangfa Bank and other major banks have successively announced the termination of individual precious metals agency trading services for the Shanghai Gold Exchange. Beyond suspending these services, another category of adjustment involves curbing leverage. For example, Industrial Bank adjusted the margin ratios for deferred contracts in its individual precious metals agency business for the Shanghai Gold Exchange, effective from the close of clearing on June 29, raising margin ratios for personal clients' deferred contracts including Au(T+D), mAu(T+D), Au(T+N1), Au(T+N2), and Ag(T+D) from 40% to 120%.

Driven by volatile gold price swings

Regarding the reasons for suspending the individual precious metals agency business for the Shanghai Gold Exchange, multiple banks have stated that the move stems from precious metals risk management needs and business development requirements. Industry insiders believe that behind this lies the high leverage risk faced jointly by banks and investors. In recent years, gold price volatility has intensified, and the potential risks of high leverage trading have continued to amplify. At the end of January this year, COMEX gold briefly surged to a historical high of $5,794 per ounce before quickly retreating, with a maximum drawdown of over 30% since the start of the year, and was quoted at $4,353.4 per ounce as of this writing. For investors, under leveraged trading, sharp market swings tend to magnify losses and can even lead to margin call risks. An investor who previously participated in deferred trading recalled to reporters: "During the days of sharp gold price swings, I kept topping up my margin again and again, and in the end I had to close my position with a heavy heart." For banks, as the agency channel and settlement party, they bear responsibilities including trade matching, fund clearing, and client suitability management. A source from the financial markets department of a city commercial bank told reporters: "When high leverage meets extreme market conditions, if a large number of clients default, banks not only have to advance funds and absorb bad debts, but also deal with regulatory inquiries, client complaints, and media fallout. The risks are considerable."

Gold accumulation business expands

In contrast to the contraction of the precious metals agency business for the Shanghai Gold Exchange, banks are vigorously expanding their gold accumulation services. In its announcement suspending the individual precious metals agency business for the Shanghai Gold Exchange, China Everbright Bank specifically noted that its physical gold consignment sales and gold accumulation services will continue to operate normally. Guangfa Bank also stated that after terminating its individual precious metals agency trading business for the Shanghai Gold Exchange, clients can choose alternative products such as gold accumulation plans or gold ETFs and silver ETFs to continue precious metals investment. A gold accumulation plan is an account-based gold product that allows periodic or active purchases, with the option to withdraw physical gold or redeem at market value, combining features of regular investment and physical asset liquidation. "From a product logic standpoint, accumulation plans do not aim to profit from short-term price differentials but are closer to long-term asset allocation tools," the aforementioned city commercial bank financial markets source told reporters. The trend of banks intensifying efforts in gold accumulation products is also evident in banking performance reports. For example, according to Bank of Jiangsu's semi-annual report for 2026, as of the end of June, its trading financial liabilities surged by 119.53% from the end of the previous year, mainly driven by the expansion of liabilities from its gold accumulation business. Bank of Jiangsu stated: "The company is actively seizing rotation opportunities in foreign exchange and precious metals assets, with asset profitability continuing to improve. At the same time, we are improving and refining the product service system, enriching and perfecting the gold client-facing product matrix, and continuously optimizing business processes and mechanism construction."