Xin Lang Cai Jing·2026-02-28 00:40Core Viewpoint - Recent adjustments by major banks in China have raised the margin requirements for personal precious metal trading to 100%, reflecting increased market risks and aiming to protect investors' interests [1][2][4]. Group 1: Margin Adjustments - Industrial and Commercial Bank of China (ICBC) announced that starting February 27, 2026, the margin for various gold and silver contracts will increase from 80% to 100%, effectively reducing leverage from 1.25 times to 1 time [1][2]. - Agricultural Bank of China (ABC) also stated that from February 26, 2026, the margin for similar contracts will be adjusted to 100% due to heightened market volatility [4]. - Construction Bank (CCB) confirmed the same margin increase for its contracts effective February 27, 2026, aligning with the other major banks [4]. Group 2: Historical Context and Trends - Prior to these adjustments, ICBC had raised the margin from 60% to 80% on February 9, 2026, indicating a trend of tightening risk management in response to market conditions [2][4]. - Postal Savings Bank had previously set a higher margin of 120% for certain contracts, reflecting a significant increase in trading thresholds [4]. - The adjustments are part of a broader trend where banks are tightening personal precious metal trading operations, including closing inactive accounts and limiting functionalities [10][11]. Group 3: Market Implications - The increase in margin requirements means that investors must now fully fund their trades, eliminating the ability to leverage their positions [6]. - The adjustments come amid a significant rise in gold prices, with projections suggesting that international gold prices could reach $6,000 per ounce by 2026, although volatility is expected to increase [12].