ICBC halts certain gold accumulation services

Industrial and Commercial Bank of China announced on Monday that it will temporarily suspend certain functions of its "ruyi gold accumulation" business starting Monday, citing macro policy adjustments and internal risk management requirements.

According to the bank's statement, applications for opening new accounts, initiating accumulation plans, or withdrawing physical gold will be put on hold. Existing customers' ongoing regular investment plans and redemption or account closure services will not be affected. The banks said that details regarding the resumption of services will be announced later.

The "ruyi gold accumulation" plan allows individual investors to regularly purchase gold through the bank, accumulating holdings over time with the option to redeem the metal in physical form.

The suspension came two days after the Ministry of Finance and the State Taxation Administration jointly released a notice on tax policies related to gold transactions on Saturday.

Effective from Saturday to Dec 31, 2027, the new policy seeks to further regulate and optimize the value-added tax system for gold trading, encourage transactions through official exchanges, and strengthen tax compliance in the sector.

Chinese banks have been adjusting their gold accumulation products since October in response to the rapid rise in gold prices and growing investor demand.

On Oct 21, the bank increased the minimum purchase amount for its gold accumulation plan to 1,200 yuan per transaction. Ping An Bank raised its minimum investment to 1,100 yuan from 900 yuan, effective Oct 24.

Earlier in October, Bank of China, ICBC, and Ningbo Bank all raised their starting investment thresholds to 950 yuan or higher. The adjustments reflect banks' efforts to strengthen risk control and guide rational investment behavior amid strong market enthusiasm.

Financial institutions have repeatedly advised investors to be prudent as gold prices continue to fluctuate at elevated levels. ICBC's risk notice issued on Oct 15 warned of increasing market uncertainties and urged customers to align gold investments with their financial capacity and risk preference.

Driven by global economic uncertainties and safe-haven demand, gold prices have reached new highs this year. Analysts said the recent policy adjustments and business suspensions reflect the financial sector's effort to maintain stability and promote healthy development in the precious metals market.