Enable Dynamic Trading Limits State-owned Major Banks Upgrade Precious Metals Business Risk Control

Our reporter Peng Yan

Recently, the precious metals market has experienced significant volatility, with many banks gradually strengthening their risk controls on precious metals businesses.

On the evening of March 3, China Construction Bank announced that to further improve risk prevention, it will implement dynamic trading limits for CCB Gold (including Easy Deposit Gold) starting March 4. At the same time, the bank is extending the delivery time for physical precious metals: due to the rapid increase in physical gold purchases recently, from March 3, 2026, delivery for customer orders will be extended from 10 to 15 business days after the order is placed (no delivery on holidays).

Notably, this move by China Construction Bank indicates that, following ICBC, another state-owned major bank has officially upgraded its risk controls on precious metals.

It is understood that previously, banks mainly used static thresholds, such as increasing minimum purchase amounts, to manage risks in precious metals businesses. Earlier this year, the industry began exploring more flexible “dynamic limit” management models.

On January 30, ICBC was the first to announce adjustments to the rules for its Ruyi Gold Savings and some physical gold products, implementing limits on transactions. ICBC stated that starting February 7, 2026, on non-trading days such as weekends and statutory holidays, the bank will impose limits on Ruyi Gold Savings transactions, including total or single-client daily deposit/withdrawal caps, and limits on individual transactions, with dynamic adjustments. The gold withdrawal process remains unaffected.

It is worth noting that shifting from static thresholds to dynamic limits has become a core feature of this round of risk control upgrades in banks’ precious metals businesses.

Xue Hongyan, a special researcher at the Shanghai Finance and Law Research Institute, told Securities Daily that the consecutive implementation of dynamic limits by ICBC and China Construction Bank mainly aims to address potential systemic risks caused by extreme fluctuations in international gold prices. This adjustment directly responds to the current environment of significantly increased volatility in the precious metals market. The deeper reason is that traditional static risk controls are no longer suitable for high-frequency market fluctuations. Banks need to shift from passive responses to proactive interventions by dynamically adjusting trading limits to prevent concentrated trading risks caused by investors chasing gains or selling off.

Yang Haiping, a researcher at the Shanghai Finance and Law Research Institute, told Securities Daily that the shift from static risk controls to dynamic limits allows banks to respond promptly to extreme market conditions. By adjusting according to actual market fluctuations, this upgrade enhances the ability to help clients manage risks and prevent the bank’s own business risks.

Additionally, several banks have adopted a “combination punch” in risk management. On one hand, many banks have issued risk warnings to guide investors to participate rationally. On March 2, ICBC, China Construction Bank, Postal Savings Bank, and China Everbright Bank issued risk alerts, advising investors to stay alert to market changes and strengthen risk prevention.

On the other hand, many banks are tightening trading rules to further “de-leverage.” For example, ICBC, Agricultural Bank of China, and China Construction Bank have raised the margin requirement for individual clients’ Shanghai Gold Exchange deferred contracts to 100%, canceling related leverage in transactions and strengthening risk controls.

According to Xue Hongyan, this tightening is directly related to the recent sharp fluctuations in gold prices and increased market trading activity. “Currently, international gold prices are at historic highs, market sentiment has shifted from risk aversion to speculation, trading is crowded, and irrational behaviors like chasing gains and selling off are increasing. Banks’ measures such as dynamic limits and margin increases are essentially guiding overheated market sentiment reasonably and preventing chain risks that could be triggered by sharp price corrections.”