Core Viewpoint - The strong international gold prices and rising global risk aversion are driving the growth of banks' precious metals businesses, with significant year-on-year increases reported in the third-quarter financial results of listed banks. However, the recent fluctuations in gold prices present new challenges for these banking operations [1]. Group 1: Growth in Precious Metals Business - The precious metals business of banks has rapidly expanded due to the sustained rise in gold prices, with smaller banks showing particularly impressive growth. As of the end of September, Nanjing Bank's precious metals business reached 7.201 billion yuan, a staggering increase of 11,914.36% compared to the end of 2024. Hangzhou Bank's precious metals business grew to 1.217 billion yuan, up 1,523.57% from the end of 2024 [2]. - Joint-stock banks also experienced significant growth in their precious metals business. By the end of September, compared to the end of 2024, the precious metals business of Shanghai Pudong Development Bank increased by over 350%, while China CITIC Bank saw an increase of over 200%. Other banks like Zhejiang Commercial Bank, Industrial Bank, China Merchants Bank, and Minsheng Bank all reported growth exceeding 100% [2]. - Major banks maintained steady growth from a high base, with the precious metals business of Bank of China, China Construction Bank, and Agricultural Bank of China all increasing by over 10% compared to the end of 2024 [2]. Group 2: Strategic Focus on Precious Metals - The precious metals business combines wealth management and increased intermediary income, potentially becoming a significant factor in banks' intermediary income. Precious metals, especially gold, are seen as irreplaceable in banks' wealth management offerings and are crucial for customer asset allocation [3]. - Analysts note that the demand for gold as a hedge and a store of value is rising among residents. Banks, as key channels for gold bar sales and coin distribution, are well-positioned to meet this demand through the continued popularity of online investment products like account gold and gold accumulation [3]. - The decline in gold jewelry consumption may lead banks to reduce reliance on traditional jewelry sales and instead focus on innovation and promotion of their precious metals business [3]. Group 3: Risk Management Amid Price Volatility - Despite the growth, the high volatility of precious metals, particularly gold and silver, poses challenges for banks. Since October, these metals have entered a period of high volatility, prompting banks to enhance their risk management strategies [4]. - In response to market fluctuations, banks have adjusted trading rules and increased the minimum purchase thresholds for gold accumulation products to a range of 950 to 1,200 yuan, compared to around 500 yuan last year. Additionally, some banks have modified their precious metals wallet services to align with real-time gold price fluctuations [4]. - Looking ahead, institutions expect gold to retain its upward potential, maintaining its importance in asset allocation. The profitability of banks' precious metals business will increasingly depend on their internal capabilities, including the establishment of robust risk management systems to mitigate price volatility risks and the optimization of asset allocation for stable returns [4].

Core Viewpoint - Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB) announced the suspension of certain gold investment services starting November 3, 2025, due to macroeconomic policy impacts and risk management requirements [1] Group 1: ICBC Announcement - ICBC will suspend the acceptance of new accounts, active accumulation, new fixed accumulation plans, and applications for physical gold extraction for its "Ruyi Gold Accumulation" business starting November 3, 2025 [1] - Existing customers with valid fixed accumulation plans will not be affected in terms of execution, redemption, or account closure [1] Group 2: CCB Announcement - CCB will halt real-time purchases, new investment purchases, and physical gold exchange applications for its "Easy Gold" business from November 3, 2025 [1] - Existing customers' investment plans, redemptions, and account closures will remain unaffected [1] - CCB will also suspend personal gold accumulation exchanges for physical precious metals and account gold exchanges for physical precious metals, while other personal gold accumulation services will not be impacted [1] Group 3: Future Communications - Both banks indicated that customers should pay attention to future announcements regarding the resumption of related services [1]

Core Viewpoint - Non-interest income is a crucial component of banks' revenue structure, reflecting operational resilience amid pressure on net interest income. The performance of non-interest income among 42 listed banks in A-shares for the first three quarters shows a total of 1.22 trillion yuan, a year-on-year increase of 583 billion yuan, representing a growth rate of 5% [1][2]. Summary by Category Non-Interest Income Growth - In the first three quarters, 18 banks reported year-on-year growth in non-interest income, with 16 banks increasing the proportion of non-interest income in total revenue [1][2]. - Notably, Zijin Bank, Changshu Bank, and Zhangjiagang Bank, all located in Jiangsu, exhibited remarkable growth rates of 54%, 35%, and 22%, respectively, contributing significantly to their total revenues [2][3]. Performance of Different Bank Types - Among the six major state-owned banks, all reported year-on-year growth in non-interest income, with five achieving double-digit growth rates. In contrast, only one national joint-stock bank saw an increase [2][3]. - The non-interest income growth rates for major state-owned banks were as follows: Agricultural Bank (21%), Postal Savings Bank (20%), Bank of China (16%), China Construction Bank (14%), and Industrial and Commercial Bank (11%) [2]. Fee and Commission Income - The total net fee and commission income for the 42 listed banks reached 578.2 billion yuan, a year-on-year increase of 4.6%, with over 60% of banks reporting growth in this area [4][5]. - Noteworthy increases in fee and commission income were observed in Changshu Bank and Ruifeng Bank, with growth rates exceeding 364% and 162%, respectively [5]. Investment Income Trends - The total investment net income for the listed banks was 477 billion yuan, reflecting a year-on-year growth of 21%, although this growth rate has slowed compared to the previous year's 24% [6]. - The investment income of many banks was impacted by fluctuations in the bond market, particularly affecting smaller banks such as city commercial banks and rural commercial banks [6].

Core Insights - Non-interest income is a crucial component of banks' revenue structure, especially under pressure on net interest income, reflecting operational resilience [1] - In the first three quarters of this year, 42 listed banks in A-shares reported a total non-interest income of 1.22 trillion yuan, an increase of 58.3 billion yuan, or 5% year-on-year [1] - The growth in non-interest income is driven by the performance of wealth management businesses and the overall market activity, although investment income has been affected by fluctuations in the bond market [1][6] Non-Interest Income Growth - Among the 42 listed banks, 18 reported a year-on-year increase in non-interest income, with 16 banks seeing an increase in the proportion of non-interest income in total revenue [1][2] - Notably, Zijin Bank, Changshu Bank, and Zhangjiagang Bank, all from Jiangsu, showed remarkable growth rates of 54%, 35%, and 22% respectively, contributing significantly to their total revenues [2] - State-owned banks demonstrated strong growth in non-interest income, with Agricultural Bank, Postal Savings Bank, Bank of China, China Construction Bank, and Industrial and Commercial Bank reporting double-digit growth rates [2][3] Fee and Commission Income - The total fee and commission income for the 42 listed banks reached 578.2 billion yuan, a year-on-year increase of 4.6%, with over 60% of banks reporting growth [4][5] - Notable increases in fee and commission income were observed in Changshu Bank and Ruifeng Bank, with growth rates exceeding 364% and 162% respectively [4] - State-owned banks also reported growth in fee and commission income, with major banks like China Merchants Bank seeing a 0.9% increase, driven by significant growth in various subcategories of income [5] Investment Income Trends - The investment net income for the 42 listed banks totaled 477 billion yuan, reflecting a year-on-year growth of 21%, although this growth rate has slowed compared to the previous year [6] - The fluctuations in the bond market have particularly impacted the investment income of smaller banks, such as city commercial banks and rural commercial banks [6] - Analysts suggest that differences in client bases and operational strategies between state-owned and smaller banks are influencing their respective non-interest income growth [3][6]

Core Viewpoint - Major Chinese banks, including Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB), have temporarily suspended certain gold accumulation services due to macroeconomic policy impacts and system upgrades aimed at enhancing customer service and adapting to recent changes in gold tax regulations [4][10]. Group 1: Service Suspension Details - On November 3, ICBC announced the suspension of its "Ruyi Gold Accumulation" services, including account openings, proactive accumulation, new fixed accumulation plans, and physical gold withdrawals [5][8]. - CCB also suspended its "Easy Storage Gold" services, including real-time purchases, new investment plans, and physical gold exchanges, while existing customers' plans remain unaffected [8][10]. Group 2: Reasons for Adjustments - The adjustments are attributed to the recent changes in gold sales value-added tax regulations issued by the Ministry of Finance and the State Administration of Taxation, necessitating system updates to comply with these new policies [10][11]. - Additionally, fluctuations in international gold prices due to global political and economic conditions have increased market risks and uncertainties, prompting banks to take precautionary measures [10][11]. Group 3: Customer Guidance and Market Context - Banks have advised customers to enhance their risk awareness regarding precious metal investments, especially in light of the recent volatility in gold prices, which have experienced significant fluctuations since October [11]. - ICBC and CCB have previously issued warnings about the risks associated with precious metal investments, urging customers to rationally manage their investment positions and be mindful of their financial situations [11].

Core Viewpoint - Major Chinese banks, including Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB), have temporarily suspended certain gold accumulation services due to macroeconomic policy impacts and system upgrades aimed at enhancing customer service and product quality [1][4][5]. Group 1: Business Operations - On November 3, ICBC announced the suspension of its "Ruyi Gold Accumulation" services, affecting new account openings, active accumulation, and physical gold withdrawals, while existing plans remain unaffected [5][7]. - Later that evening, ICBC reversed its decision and resumed accepting applications for the "Ruyi Gold Accumulation" services, allowing customers to manage their gold accumulation through various channels [2][7]. - CCB also announced a suspension of its "Easy Storage Gold" services, including real-time purchases and physical gold exchanges, while existing investment plans continue to operate normally [7][10]. Group 2: Market Context - The recent suspension of gold accumulation services is linked to adjustments in the banking system to comply with new gold tax policies and to manage risks associated with market volatility [4][10]. - Since October, international gold prices have experienced significant fluctuations, prompting banks to issue risk warnings and advise investors to exercise caution and manage their investment positions carefully [10][11][12].

Core Viewpoint - Banks are tightening their gold accumulation business, with several institutions raising the minimum purchase threshold to 1200 yuan since October, potentially leading to a shift in personal investment channels for gold if more banks follow suit [1] Group 1 - Several banks have recently increased the minimum purchase threshold for gold accumulation business to 1200 yuan [1] - The Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB) have paused and then resumed the withdrawal of physical gold bars, indicating volatility in their policies [1] - Experts suggest that if other banks also suspend or tighten this business, it may lead to a short-term migration of personal investment channels for gold [1]

Group 1 - Industrial and Commercial Bank of China (ICBC) announced the suspension of its "Ruyi Gold" accumulation business effective from November 3, 2025, due to macroeconomic policy impacts and risk management requirements [1] - China Construction Bank (CCB) also announced a suspension of its "Easy Storage Gold" business, including real-time purchases and physical gold exchanges, effective from November 3, 2025, while existing customers' plans remain unaffected [1] - The recent changes in gold tax policies by the Ministry of Finance and the State Administration of Taxation have prompted system upgrades in banks to comply with the new regulations [1] Group 2 - From November 1, 2023, to December 31, 2027, standard gold traded on the Shanghai Gold Exchange and Shanghai Futures Exchange will be exempt from value-added tax (VAT) unless physical gold is withdrawn or sold outside the exchange [2] - The new tax policy increases the cost of investing in physical gold, while electronic gold investments within the exchange gain a tax advantage [2] - China Merchants Bank has adjusted the pricing of its physical gold bars in response to the new gold tax policy, indicating that the tax has been incorporated into the product pricing [2]

Core Viewpoint - The recent suspension and subsequent resumption of gold accumulation services by major banks, specifically Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB), reflect the impact of new tax policies on gold investments and the banks' need to adapt to regulatory changes [1][2][4]. Summary by Sections Business Adjustments - On November 3, ICBC and CCB announced significant adjustments to their gold accumulation services, including the suspension of new account openings and physical gold withdrawals [2][4]. - ICBC's suspension was initially set to last until November 3, 2025, but the bank resumed services later that same day [6][8]. Regulatory Impact - The adjustments are directly related to new tax policies that require banks to differentiate between investment and non-investment uses of physical gold, leading to increased compliance burdens [4][5]. - Banks are expected to restructure their systems to align with the new tax regulations, which may increase operational costs in the short term [4][10]. Market Risks - The banks' actions also reflect a response to heightened market risks, with the intention of encouraging investors to manage their positions more cautiously [5][6]. - Historical patterns show that banks often tighten operations during periods of significant volatility in precious metal prices [6]. Future Implications - The tightening of gold accumulation services may lead to a shift in personal investment channels, as investors seek alternative avenues for gold investment [9][10]. - Potential alternative investment channels include gold ETFs, purchasing gold bars from commercial institutions, and using online platforms for gold accounts [11]. Investor Guidance - Investors with a need for physical gold or those accustomed to regular accumulation should avoid new bank accumulation plans in the short term and monitor the situation closely [11]. - The Shanghai Gold Exchange and public gold ETFs are expected to attract more retail investors due to their lower entry barriers and higher liquidity [11].

Core Viewpoint - Major Chinese banks, including Industrial and Commercial Bank of China (ICBC) and China Construction Bank (CCB), have announced the suspension of new gold accumulation business due to macroeconomic policy impacts and risk management requirements, effective immediately [1][2]. Summary by Sections Business Operations - ICBC has suspended various gold accumulation services, including "Ruyi Gold Accumulation" account openings, active accumulation, new fixed accumulation plans, and physical gold withdrawals, while existing plans will continue to be executed normally [2]. - CCB has similarly halted real-time purchases, new fixed accumulation purchases, and physical gold exchanges for its "Easy Gold" service, but existing customers can still redeem and close accounts without interruption [2]. Regulatory Changes - The suspension coincides with significant changes in gold tax policies announced by the Ministry of Finance and the State Taxation Administration, effective from November 1, 2025, to December 31, 2027. The new policy aims to optimize VAT arrangements for gold transactions and clarify the distinction between investment and non-investment uses [3]. Market Reactions - Several banks have already raised the minimum investment thresholds for gold accumulation products in response to significant fluctuations in gold prices. For instance, ICBC increased its minimum investment from 850 yuan to 1000 yuan [4]. - Online platforms have also experienced congestion and restrictions, with some services temporarily unavailable due to high gold prices and increased volatility [5]. Risk Management - The decision to suspend new openings and physical withdrawals is aimed at managing three types of risks: reducing immediate inventory and delivery pressure during extreme volatility, allowing time for compliance and system integration during the tax transition, and adjusting thresholds and processes to mitigate the impact of emotional trading on operations [6]. Investor Implications - Investors will face restrictions on new openings and physical withdrawals, but existing plans remain unaffected. Increased volatility may lead to adjustments in trading hours and parameters by banks and platforms [8]. - A cautious approach is recommended, emphasizing diversification and gradual investment rather than heavy concentration in a single asset [8]. Future Observations - Key points to monitor include whether more banks will follow suit in suspending new openings or raising thresholds, the impact of the new tax policy on gold trading channels, and the evolution of price and trading structures in the market [11][12].