China Construction Bank Corporation (ASX: 601939) has announced the termination of its agency service for personal precious metals trading on the Shanghai Gold Exchange.

The bank stated that this move is to mitigate business risks and safeguard investor interests.

Key Details of the Service Closure

The bank will cease the functionality for this agency service at the end of the daily settlement on July 24th.

Affected trading products include Au99.99, Au100g, PGC30g, Au(T+D), mAu(T+D), and Ag(T+D).

Clients holding positions or physical inventory in these products are advised to sell or close out their holdings promptly via the bank's mobile banking or online banking platforms.

Post-Closure Procedures

Following the service shutdown, if clients still hold positions or inventory, the bank will, in accordance with the relevant terms of its agency agreement, proceed to sell the inventory or force-close positions at an opportune time.

Funds from these sales or liquidations will be automatically transferred to the client's designated account linked to the service.

Due to potentially significant price fluctuations in the precious metals market, the actual selling or forced liquidation price may differ from client expectations, hence the recommendation for clients to act on their own initiative as soon as possible.

Account Termination

After completing the aforementioned operations, the bank will close the agency service function for clients with no open positions, no inventory, and no outstanding debts.

The agency agreement signed between the client and China Construction Bank Corporation will then be terminated.

Handling of Unresponsive Accounts

For clients who cannot be contacted due to abnormal communication channels, changed contact information, or other reasons preventing timely action, the bank will process their accounts in the same manner at the specified time.