China Merchants Bank’s Strategic Response to a Turbulent Precious‑Metal Market

On 2 February 2026, China Merchants Bank (CMBC) issued a formal risk‑warning announcement in the wake of a sharp decline in global gold and silver prices. The bank’s announcement—issued at the market close on 2 Feb—stated that, effective from the settlement of that day, it would revise its “招财金” product to curb exposure to the volatile precious‑metal sector. The adjustment follows a 40 % intraday drop in silver and a 20 % drop in gold since 29 January, when prices peaked. The move underscores CMBC’s commitment to protecting investors and its readiness to act proactively when market fundamentals shift.

The Board’s Decision: A Signal of Governance Discipline

CMBC’s swift action is complemented by a concurrent corporate governance milestone. On the same day, the bank announced that Xu Mingjie had received official approval as chief risk officer, with the qualification granted by the National Financial Supervisory Administration (reference No. 金复〔2026〕60号). Xu, born in September 1968, holds dual bachelor’s degrees from Xi’an Jiaotong University and Shanghai University of International Business and Economics, and is a Certified Public Accountant. His appointment—effective 30 January 2026—aligns with the bank’s broader strategy to reinforce risk oversight amid heightened market volatility.

Performance in Context

CMBC’s financial strength remains resilient. According to a 2025 performance preview released on 2 February, the bank recorded ¥337.532 billion in operating revenue—a marginal 0.01 % year‑over‑year increase. While the growth appears modest, it reflects the bank’s disciplined approach to managing risk in an environment where commodity prices are fluctuating sharply. The bank’s price‑earnings ratio of 7.49 and a market capitalization of approximately HK 1.2 trillion demonstrate a solid valuation that investors can rely on even as market sentiment swings.

Market Dynamics and CMBC’s Position

The precipitous fall in gold and silver prices was driven by a confluence of factors: a sudden reversal from record highs, liquidity constraints in international markets, and a surge in panic‑selling among retail investors. Major banks—including Industrial and Commercial Bank of China, China Construction Bank, and China Merchants Bank itself—issued risk alerts, and several physical‑metal vendors reported full sales of their inventories.

In this volatile backdrop, CMBC’s decision to adjust its “招财金” product and reinforce its risk‑management hierarchy signals a calculated stance: the bank is willing to recalibrate its exposure to preserve capital integrity and safeguard customer interests. While some might view the swift product revision as an indication of over‑cautiousness, the bank’s track record of stability and its robust governance framework suggest otherwise.

Bottom Line

China Merchants Bank’s actions on 2 February 2026 exemplify a proactive, risk‑centric culture. By tightening precious‑metal exposure and endorsing a seasoned chief risk officer, the bank demonstrates its readiness to navigate market turbulence without compromising its financial soundness or investor confidence. In a financial landscape where volatility can erupt overnight, CMBC’s measured response sets a benchmark for prudence and strategic foresight.