Industrial Bank Raises Margin Requirements for SGE Retail Precious Metals Deferred Trades

Industrial Bank said on June 27 that it will raise the contract margin ratio for its agency Shanghai Gold Exchange (SGE) retail precious metals deferred trading business, as banks tighten rules amid sharp volatility in global precious metals markets, according to 36Kr. Since June, multiple Chinese commercial banks have issued notices adjusting rules for agency SGE retail precious metals trading, while China Construction Bank and Industrial and Commercial Bank of China have explicitly said they will shut down the business. Industry sources said the moves respond to recent gold price swings and align with regulatory efforts in recent years to standardize retail derivatives trading, while noting that curbing leveraged gold speculation does not mean banning gold purchases.