Big Chinese Banks Pause Opening of New Precious Metal Trading Accounts as Prices Swing
Zhang Yushuo
DATE:  Nov 27 2020
/ SOURCE:  Yicai
Big Chinese Banks Pause Opening of New Precious Metal Trading Accounts as Prices Swing Big Chinese Banks Pause Opening of New Precious Metal Trading Accounts as Prices Swing

(Yicai Global) Nov. 27 -- Three of China’s five biggest banks have said they will cease accepting applications for new precious metal trading accounts for individuals due to volatile price fluctuations and increased market uncertainties.

The Industrial and Commercial Bank of China and the Bank of Communications will start from tomorrow and the Construction Bank of China from Nov. 30, the lenders said today.

Both ICBC and CCB will also temporarily halt the opening of new accounts by agents who help personal clients trade in precious metals.

Customers who already have accounts will not be affected, said ICBC, the world’s biggest bank by total assets.

The price of gold has fallen sharply in the last two weeks by more than USD150 to a four-month low. Today it was priced at USD1,805 an ounce.

Investors in a crude futures product Yuanyoubao offered by another of the top five lenders, the Bank of China, suffered huge losses after prices plunged into the negative in March this year.

Editor: Kim Taylor

Follow Yicai Global on
Keywords:   precious metal,gold,silver,price