Financial Services Association, November 19 (Reporter Peng Kefeng) After Trump's election, the price of gold recently experienced severe shocks, and some institutions have adjusted related business accordingly.

On November 18, China Construction Bank published a document on its official website to make relevant adjustments to the agreement relating to the renewal of the public gold deposit business. Among them, China Construction Bank clearly stated that the bank's risk rating for the public gold deposit business was medium risk, that conservative customers could not participate, and warned that the business “may lose money.”

A Financial Services Association reporter inquired and found that this was also the first time that a major state-owned bank made relevant adjustments to the savings fund business after the Shanghai Financial Services Institute publicly warned of the risks of gold transactions.

CCB updates public gold deposit business agreement to prompt low-risk investors to “ban entry”

Yesterday, China Construction Bank published an article on its official website stating that due to system upgrades and optimization, it will update the text of the relevant agreement on the public gold deposit business. Specifically, CCB has revised the “China Construction Bank Agreement on Public Gold Deposit Business”, “China Construction Bank's Instructions on Public Gold Savings Business Rights”, and “China Construction Bank's Risk Disclosure Statement on Public Gold Savings Business”. The content is mainly to optimize the rules for applying public gold deposits to public wallets.

CCB also stated that the new version of the agreement and other texts mentioned above will be officially launched on November 23, 2024 (Saturday), so customers are requested to read the above texts carefully.

A Financial Services Association reporter checked and found that CCB issued an update to the public gold deposit business agreement on November 17 last year. Compared to a year ago, two documents were mainly added: “China Construction Bank's Notice on Public Gold Savings Business Rights” and “China Construction Bank's Public Gold Savings Business Risk Disclosure”.

At the same time, compared with previous documents, CCB focused on risk warning and control measures this time. CCB said that customers are required to conduct a risk tolerance assessment at the bank before handling the public gold deposit business for the first time. They have not carried out a risk tolerance assessment for more than a year and need to re-evaluate. Furthermore, CCB's risk rating for the public gold deposit business is medium risk (suitable groups are steady and aggressive). Customers may face loss of principal and earnings, but the maximum loss will not exceed the investment principal.

CCB also focused on adding an introduction to transaction risks in the agreement. CCB clearly indicates in bold font that participation in the public gold deposit business includes but is not limited to the following policy risks, price risks, operational risks, liquidity risks, systemic risks, and force majeure risks, which may cause loss of principal and earnings for your unit. Please invest carefully.

Recent fluctuations in the price of gold have taken the lead in warning risks

A Financial Services Association reporter noticed that before CCB issued a warning, the Shanghai Stock Exchange had already issued a risk warning for gold trading on its official website.

On November 14, the Shanghai Finance Institute issued a notice on how to control market risks in the near future. In the notice, Shangjin said that precious metal prices have continued to fluctuate greatly recently. All member units are requested to continue to make detailed risk emergency plans, maintain the smooth operation of the market, and prompt investors to do a good job of risk prevention, reasonably control positions, and invest rationally.

An inquiry by the Financial Services Association reporter found that on October 31 this year, spot gold reached a record high of 2790.13 US dollars per ounce, but since then, with Trump's official election as President of the United States and the implementation of the “Trump Deal”, international gold prices have adjusted accordingly. On the day of the risk alert issued by the Shanghai Stock Exchange on November 14, spot gold was reported at $2555.98 per ounce in early trading, a drop of more than 0.6% during the day. However, in the early morning of November 19, spot gold surged 2% to $2614.26 per ounce, which is a recovery from before. However, in the domestic market, the Shanghai Stock Exchange's Shanghai Stock Exchange's decline was still around 3.60% in the past week.

Hualian Futures Fulin pointed out in a research report released today that gold is expected to still have room for adjustment. It further pointed out that the impact of the US election on gold is complicated. After Trump was elected president, he advocated that an active fiscal policy would lead to US inflation and benefit gold; but on the other side, he advocated a reduction in corporate tax, that is, a reduction in domestic taxes, which is beneficial to risky assets such as the US stock dollar index, and geopolitics may ease, and the safe-haven function of gold may weaken.