NEW: 🇨🇳 China’s largest state banks are tightening controls on retail gold purchases as demand surges.

Major lenders including Industrial and Commercial Bank of China, China Construction Bank, and Bank of China are reportedly imposing nationwide daily quotas on accumulated gold purchases.

Once the daily quota is reached, further buying is halted across the bank.

The move comes as gold price volatility increases and physical delivery demand rises.

Some banks are also extending delivery times for physical gold products.

Accumulated gold products are bank-mediated investment accounts that track gold exposure rather than holding fully segregated bullion.

Rapid retail demand can force banks to source additional physical gold through the Shanghai Gold Exchange, increasing liquidity and balance sheet risks.

Chinese regulators are reportedly encouraging tighter controls as domestic gold speculation intensifies.

China’s central bank has simultaneously been accumulating gold reserves for 16 straight months, with holdings estimated near 2,309 tonnes.