Over 10 banks halt SGE personal precious metals agency business, initiated by exchange

Beijing – China Everbright Bank recently announced that it will suspend its agency precious metals business for individual clients with the Shanghai Gold Exchange (SGE), effective after October 19, 2026. The move follows a broader industry trend, with over ten banks having already announced similar suspensions.

Key Details of the Suspension

Everbright Bank stated that the decision was made based on precious metals risk management and business needs. The suspension covers contracts including Au99.99, Au100g, iAu99.99, iAu100g, and Ag (T+D).

• After the close of trading on October 19, 2026, the bank will gradually disable trading access via mobile banking and online banking channels.
• Once access is closed, clients holding positions will be restricted from conducting closing, selling, or other operations.
• Clients currently holding spot inventory or deferred positions are advised to complete spot sales, deferred position closures, fund transfers, and contract terminations independently before October 19.
• For clients with signed agreements but no positions, the bank will terminate the agency relationship. For those with remaining funds in margin accounts but no positions, funds will be returned to the client's Everbright Bank account.

Notably, physical gold consignment services and gold accumulation services will continue as normal and are unaffected by this change.

Industry-Wide Trend

According to informed sources, the Shanghai Gold Exchange initiated the termination of individual agency precious metals business through banks. Multiple member banks have since responded by suspending the service.

"Everbright Bank's suspension is relatively late; many banks terminated this business earlier this year," a source familiar with the matter said.

The source added that while clients can still sell existing positions, new purchases have been blocked for some time. "Since the SGE proposed and formally decided to stop this agency business, banks have already halted new buy orders. During this period, banks have been steadily pushing for position liquidation."

According to available data, only a small number of clients in certain cities still hold minor positions, and they are gradually selling off. After October 19, no further trading operations will be permitted, and banks will proceed with forced position closures.

Market Data

Statistics show a shift in trading composition at the SGE:

• In December 2025, member proprietary trading accounted for 93.56% of total trading volume, while member agency trading accounted for 6.44%.
• By August 2026, member proprietary trading had risen to 94.89%, while agency trading fell to 5.11% — a decline of 1.33 percentage points.

Banks That Have Announced Suspensions

Preliminary statistics indicate that more than ten banks have announced plans to suspend or have already suspended this business in 2026, including:

• Postal Savings Bank of China
• Ping An Bank
• China Guangfa Bank
• China Merchants Bank
• Bank of Communications
• Industrial and Commercial Bank of China
• China Construction Bank
• Bank of China
• Hua Xia Bank
• Shanghai Pudong Development Bank (SPD Bank)
• China Everbright Bank

SPD Bank, for example, will suspend its SGE agency precious metals business for individuals after September 25, 2026, and will disable trading access via mobile banking, online banking, and over-the-counter channels. After closure, clients will be restricted from closing positions, selling, or taking delivery.

Risk Characteristics of the Business

Bank agency precious metals trading with the SGE typically includes two types:

• Spot trading: Full payment required
• Deferred trading: Margin-based, involving leverage

The deferred trading business carries higher risk due to its leveraged nature. For example:

If a client buys 100 lots of the Ag (T+D) silver deferred contract at a margin ratio of 66.01%, with a contract price of 23,000 yuan per lot, the total transaction value is 2,300,000 yuan, and the required margin is 1,518,230 yuan.

If the market declines, daily mark-to-market settlement will deplete available funds. When losses erode the margin and risk indicators are triggered, the bank will demand additional margin. If the decline continues significantly, the margin may become insufficient to cover losses. The bank then has the right to forcibly close positions. If the proceeds from forced liquidation are insufficient to cover losses, fees, and other costs, the bank may pursue further recovery.

Risk Warnings Issued by Banks

Since the beginning of 2026, banks have frequently issued risk warnings regarding precious metals business. For instance, in mid-June, SPD Bank warned:

"Recently, precious metals prices have experienced significant volatility, increasing market risk. Please enhance risk awareness, monitor your account positions in precious metals and SGE agency business, manage positions, exposure, and margin in advance, and consider timely stop-loss or profit-taking. Pay close attention to margin requirements, as insufficient margin may trigger forced liquidation and result in investment losses."

Reported by Zhang Shoulin | Edited by Jin Mingyu, Yang Jun, Yi Qijiang