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Not clearing positions will result in forced liquidation? Gold prices fluctuate sharply, banks tighten personal "gold trading" business, multiple institutions raise margin requirements to 100%

Source: Times Finance Author: He Xiulan

On March 19, international gold prices dropped sharply again, with London gold falling over 2.4% intraday, breaking below the $4,700 per ounce level, with a decline of over 6% in just two days.

Since the beginning of 2026, London gold prices surged to nearly $5,600 per ounce, a record high, then experienced an extreme single-day plunge of nearly 10%, showing a pattern of high-level volatility and significant correction.

Against this backdrop, multiple banks have rapidly implemented measures to tighten personal precious metals businesses, including shutting down agency services for the Shanghai Gold Exchange (“SGE”), increasing contract margin requirements, adjusting trading limits, and upgrading risk access.

On March 17, Postal Savings Bank of China (601658.SH) and China Minsheng Bank (600016.SH) both announced further restrictions on personal precious metals services. Postal Savings Bank extended the closing date for agency SGE personal precious metals trading to March 27, after which forced liquidation and fund transfers will occur; Minsheng Bank continues to phase out existing clients, reminding users who haven’t canceled to complete closing, withdrawal, and termination procedures as soon as possible.

Xue Hongyan, a special researcher at Su Commercial Bank, told Times Finance that most banks are generally raising margin ratios and standardizing management of existing clients, driven by multiple common pressures facing precious metals businesses. Market-wise, geopolitical and economic policy uncertainties have amplified price volatility, prompting banks to increase margins to reduce leverage trading risks. Operationally, a large number of “zero” accounts occupy system resources, making it difficult to monitor active clients’ trading behaviors, so banks need to clear inactive accounts to optimize resource allocation. Additionally, precious metals trading requires higher risk capital, and increasing margin requirements and controlling business scale help banks improve capital efficiency and overall operational stability.

Image source: TuChong Creative

Banks Differentiatedly Tighten Personal “Gold Speculation” Business

Times Finance found that this round of tightening measures by banks shows layered progression and focus on key areas, mainly around agency SGE personal precious metals trading and gold savings services. Different banks, based on their own business layouts, have introduced varied contraction measures.

In the most stringent shutdowns, several nationwide banks including Postal Savings Bank, Ping An Bank (000001.SZ), and Minsheng Bank recently announced withdrawal from agency SGE personal precious metals services.

Postal Savings Bank was the first to announce in February 2026 that it would cease agency services for SGE personal precious metals, requiring clients to complete position closures or inventory sales within a deadline. On March 17, the bank further extended this deadline to March 27, explicitly stating that overdue positions will be forcibly closed and funds transferred to settlement accounts, with related trading permissions revoked, covering all product categories such as Au99.99 and Au (T+D). Minsheng Bank continued its previous phased withdrawal, having closed buy and open position functions in July 2022 and completed client deactivation in February 2023, and on March 17, 2026, reminded remaining clients to act promptly to close accounts.

Ping An Bank announced on March 10 that it would gradually shut down related business permissions starting April 1 and fully exit, with margin ratios for deferred contracts raised to 100% after market close on March 11, eliminating leverage entirely, requiring clients to close positions and terminate accounts by the end of March. Industrial Bank (601166.SH) also began channel contraction on February 14, closing online trading channels for agency SGE personal precious metals, retaining only counters and mobile banking, indirectly reducing business scale.

Besides direct shutdowns, several state-owned banks have proactively begun deactivating inactive accounts and controlling leverage to reduce risks from the source.

As early as December 2025, ICBC (601398.SH), China Construction Bank (601939.SH), and others started clearing inactive accounts—transferring out funds and closing trading functions for clients with no positions, no inventory, and no debts but with margin balances, retaining only those with open positions to reduce overall business scale.

In 2026, leverage control became a key focus. China Construction Bank, from February 27, increased margin ratios for all deferred contracts including Au (T+D) and Ag (T+D) from 80% to 100%, echoing Ping An Bank, to cut off risks from leveraged trading. Agricultural Bank of China (601288.SH) adopted a combination of deactivation and guidance, starting to clear long-term inactive clients in October 2025, and lowering gold spot sale fees to zero to reduce clients’ closing costs and encourage proactive operations.

Low-risk businesses like gold savings are also tightening

In addition to the direct shutdown of agency SGE personal precious metals trading and deactivation of inactive accounts, low-risk gold investment products such as gold savings are also being tightened through higher thresholds, dynamic limits, and adjusted trading rules to enhance risk control across all categories.

As a popular form of personal gold investment, gold savings had been favored for its low entry barriers and flexible operations. However, it has now become a focus of regulatory adjustments. ICBC, starting February 7, 2026, implemented dynamic limits on non-SGE trading days for Ruyi Gold Savings, and raised the risk tolerance level requirement to C3 balanced or above. China Construction Bank increased the minimum amount for personal gold savings to 1,500 yuan, imposed overall purchase limits, and extended physical gold delivery cycles to 10–15 working days. Bank of Communications (601328.SH) implemented risk tier management, restricting gold wallet services to growth and above risk levels, while conservative, steady, and balanced clients can only perform real-time sell and termination operations.

Industry insiders believe that the recent intensive tightening of personal “gold speculation” by banks results from a combination of market risk, business cost-effectiveness, and regulatory compliance considerations.

Xue Hongyan told Times Finance that recent sharp fluctuations in precious metal prices, combined with individual investors’ lack of professional risk management capabilities, increase the risk of “margin calls” in extreme market conditions—meaning investors could lose more than their margin. As a member of SGE, banks bear the responsibility of clearing and settlement, which exposes them to substantial risk. Moreover, disputes arising from investor losses also raise operational costs. From a business value perspective, commission income from agency precious metals trading is limited, while banks must invest significant resources in risk control and compliance management. After the implementation of new gold trading tax policies in November 2025, banks also face additional reporting obligations, further reducing business attractiveness. Some banks have already begun to shrink related businesses gradually, and this full withdrawal is a natural extension of their risk management strategies.

“Collective withdrawal or contraction of personal precious metals trading by banks has become an industry trend. More banks are expected to follow, with the overall direction shifting toward low risk, specialization, and asset allocation. Future developments will feature three main characteristics: continued reduction and eventual elimination of trading leverage; a shift of focus from trading channels to asset allocation services, guiding clients from short-term speculation to long-term investment; and stricter channel integration and customer suitability management, with enhanced assessment of investors’ risk tolerance,” Xue Hongyan said.