Xin Lang Cai Jing·2025-12-16 10:17Core Viewpoint - The recent adjustments by major banks in China regarding personal precious metals trading reflect a cautious approach towards market risks, with several banks tightening their management of such businesses to protect investor interests [1][3][7]. Group 1: Bank Adjustments - On December 15, Industrial and Commercial Bank of China (ICBC) announced enhanced management for personal precious metals trading, urging clients with idle accounts to withdraw funds by December 19 [1][4]. - Other banks, including Agricultural Bank of China, China Construction Bank, and several regional banks, have also followed suit, indicating a broader trend of reducing personal precious metals business [1][6][7]. - The adjustments are part of a larger industry trend, with banks closing accounts that have had no trading activity for extended periods, reflecting a shift in risk management strategies [7][8]. Group 2: Market Context - The tightening of personal precious metals trading comes in the wake of a new tax policy implemented in October, which distinguishes between investment and non-investment gold, increasing compliance costs for banks [11][12]. - The new tax regulations require banks to track the use of physical gold more stringently, leading to operational challenges, particularly for smaller banks [11][12]. - The demand for gold has shifted towards more liquid financial products like ETFs, which offer lower costs and greater convenience compared to physical gold investments [12]. Group 3: Future Outlook - The global gold market has seen significant price increases, with a reported rise of over 60% in 2025, driven by economic expansion and geopolitical uncertainties [12]. - Looking ahead to 2026, the gold market is expected to experience a dynamic balance of various forces, with ongoing structural demand from investors and central banks potentially supporting prices, while economic recovery and interest rate changes may exert downward pressure [12].