The window for individual investors to trade deferred contracts on the Shanghai Gold Exchange through bank channels is steadily closing.

China Everbright Bank Company Limited announced on September 18 that it will suspend its personal precious metals agency business for the Shanghai Gold Exchange starting October 19.

After the final clearing and settlement, trading access via mobile banking and online banking platforms will be terminated, covering all products including Au99.99, Au100g, and Ag(T+D).

A growing number of lenders have already exited this business line.

Postal Savings Bank of China was the first to announce closure in February, with services officially halted on March 17; China CITIC Bank ceased operations from August 28; Shanghai Pudong Development Bank announced on September 8 that it would suspend services after September 25.

Additional major institutions including ICBC, China Construction Bank, Bank of Communications, Bank of China, China Merchants Bank, and Guangfa Bank have progressively implemented similar measures since June.

By preliminary count, more than ten banks have formally announced closures or materially tightened retail gold trading access this year.

Meanwhile, banks continue to offer non-leveraged alternatives such as accumulated gold savings and physical gold products.

China Everbright Bank has confirmed that gold accumulation accounts and physical gold consignment sales will remain unaffected; non-leveraged products including accumulation gold, gold bullion bars, gold ETFs, and paper gold will still be available to investors.

What is being withdrawn is the agency channel for individual deferred contracts on the Shanghai Gold Exchange, a route that introduced leverage and volatility into the retail segment.

This year's gold price swings magnified the risk embedded in this channel.

International spot gold hit an all-time high of $5,590 per ounce in late January, then fell below $4,000 by the end of June, representing a decline of more than 29% from its yearly peak.

Deferred contracts inherently carry leverage, and when prices reverse sharply, client margin positions come under immediate pressure, with extreme scenarios potentially leading to margin shortfalls.

ICBC raised its standard trading margin requirement for deferred contracts from 140% on June 18 to 190% by July, while forced-liquidation margin was increased from 120% to 170%.

The 190% margin level suppresses leverage through higher capital requirements, functioning as a risk-control gate.

The immediate backdrop to these exits is a recalibrated risk-reward equation.

While deferred contracts generate fee income, banks now face suitability management burdens, dispute resolution costs, and reputational risk during extreme market movements. Industry insiders view this round of withdrawals as a long-term structural cleanup of the business.

Regulatory pressure is also building.

The Shanghai Gold Exchange has already shut down all retail auction-based trading categories as of January 2026; new derivatives rules introduced in June restrict over-the-counter derivatives to professional investors only.

A new gold tax policy effective November 2025, for the first time, distinguishes between investment and non-investment purposes, adding mandatory use declaration and invoice management requirements that raise compliance costs for agency services.

With risk, regulation, and cost all moving in the same direction, banks are converging on a consistent approach: no longer providing retail access to individual deferred contracts.

Client demand for gold allocation, however, remains intact.

Non-leveraged products such as accumulated gold, physical bullion bars, gold ETFs, and paper gold are still accessible, and some banks have lowered fees on accumulation gold and regular purchase plans to serve ongoing allocation demand.

For the Shanghai Gold Exchange, the retail channel for participating in auction-based trading through banks is being phased out, with auction and derivatives markets returning to institutional and professional investors.

On October 19, China Everbright Bank will close its online trading access.

The path for individuals to trade deferred contracts on the banking side is now closed, and gold services are pivoting toward a direction that emphasizes allocation rather than leverage.