(Kitco News) – A few of China’s biggest banks have introduced some restrictions on precious metals trading services for retail clients. These banks include Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), Huaxia Bank, and Industrial Bank Co., Ltd.
These banks have curbed precious metals transactions since the start of the year, according to a report from Securities Journal.
These restrictions include limits on the opening of new accounts, increases in guarantee deposit ratios, as well as suspensions on purchase transactions, and the cancellation of agency relationships.
Commercial Bank of China sent out a notice at the start of the month stating that it would increase guarantee deposit requirements for some transactions starting from the 8th July. Starting from 15th August it will also suspend the provision to retail investors of precious metals deferred settlements contracts on the Shanghai Gold Exchange, as well as purchase trades for spot contracts.
Some have suggested that these measures have been enacted due to the volatility of precious metals prices of late. Gold has moved back towards $1700/oz from being just above $2000/oz in March. The rising instability in stock markets in China and inflation have also been major concerns.
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