Enable dynamic trading limits: State-owned major banks upgrade precious metals business risk control

Reporter: Peng Yan

Recently, the fluctuations in the precious metals market have significantly increased, and multiple banks have successively strengthened risk control in precious metals business.

On the evening of March 3, China Construction Bank announced that to further enhance risk prevention, it will implement dynamic trading limit management for CCB Gold (including Easy Storage Gold) starting from March 4. At the same time, the bank will extend the delivery time for physical precious metals: due to the rapid increase in the purchase volume of physical precious metals recently, from March 3, 2026, the delivery time for customer orders of delivery-type orders will be extended to 10 to 15 working days after the customer places an order (no deliveries on holidays).

The reporter noted that this move by China Construction Bank indicates that, following the Industrial and Commercial Bank of China, another state-owned bank has officially completed the risk control upgrade for the precious metals business.

It is understood that previously, the banking industry primarily implemented risk control for precious metals business through increasing the minimum purchase amount for accumulative gold and other “static thresholds.” At the beginning of this year, the industry began to explore a more flexible “dynamic limit” management model.

On January 30, the Industrial and Commercial Bank of China was the first to announce adjustments to the rules for the sales of certain brands of physical gold products and the accumulative gold business, clarifying that it would implement limit management for transactions in the accumulative gold business. The Industrial and Commercial Bank stated that starting from February 7, 2026, on weekends and statutory holidays, which are non-trading days at the Shanghai Gold Exchange, it will implement limit management for the accumulative gold business, with limit types including full or single customer daily accumulation/redemption limits, single transaction accumulation or redemption total limits, etc., which will be dynamically set, while the withdrawal of gold will not be affected.

It is noteworthy that the shift from static thresholds to dynamic limits has become a core feature of this round of bank upgrades in risk control for precious metals.

Xue Hongyan, a special researcher at Suzhou Commercial Bank, told a reporter from the Securities Daily that the consecutive implementation of dynamic limit management for precious metals by the Industrial and Commercial Bank of China and China Construction Bank is primarily to address the potential systemic risks brought about by extreme fluctuations in international gold prices. This adjustment directly responds to the significantly aggravated volatility in the current precious metals market. A deeper reason lies in the fact that traditional static risk control measures are no longer able to match the high-frequency volatility characteristics of the market, requiring banks to shift from passive responses to proactive interventions, and to prevent concentrated trading risks that may arise from investors chasing prices through dynamic adjustments to trading limits.

Yang Haiping, a researcher at the Shanghai Academy of Finance and Law, stated in an interview with the Securities Daily that the core advantage of banks shifting from static risk control to dynamic limits is their ability to respond timely to extreme market conditions; based on the actual volatility of the market, this transition achieves an upgrade from passive defense to proactive adjustment, significantly enhancing the effectiveness of helping customers manage risk and controlling risks in the banks’ own business.

In addition, several banks have launched a “combination punch” in risk control. On one hand, many banks have densely released risk warnings to guide investors to participate in trading rationally. On March 2, the Industrial and Commercial Bank of China, China Construction Bank, Postal Savings Bank, and China Everbright Bank simultaneously issued risk warnings, advising investors to closely monitor market changes and enhance risk prevention.

On the other hand, many banks have chosen to tighten trading rules and further “de-leverage.” For instance, the Industrial and Commercial Bank of China, Agricultural Bank of China, and China Construction Bank have successively raised the margin ratio for individual clients’ Shanghai Gold Exchange deferred contracts to 100%, canceling the trading leverage for related business and strengthening risk control.

In Xue Hongyan’s view, this tightening is directly related to the recent intensified fluctuations in gold prices and the rising trading enthusiasm in the market. “Currently, international gold prices are at historical highs, market sentiment has shifted from risk aversion to speculation, trading congestion has increased, and irrational behaviors of chasing prices have become more common. The banks’ operations, such as dynamic limits and raising margin ratios, are essentially reasonable guidance of the overheated market sentiment, preventing potential chain risks that may arise from severe price corrections.”

(Editor: Wen Jing)

Keywords:

                                                            Precious Metals