Central Bank: Actively, prudently, safely, and orderly promote the application of artificial intelligence in the financial sector; Ping An Bank will shut down the personal "gold trading" channel | Financial Morning Briefing

Everyday Editor | Zhang Yiming

| Thursday, March 12, 2026 |

NO.1 Central Bank: Actively and prudently promote the safe and orderly application of artificial intelligence in the financial sector

According to the People’s Bank of China website, the PBOC held the 2026 Technology Work Conference. The meeting emphasized deepening the integration of industry and technology, actively and prudently promoting the safe and orderly application of artificial intelligence in the financial sector, and releasing the momentum of digital and intelligent development. It also called for enhancing the dual empowerment of domestic and international financial standards and continuously improving standard service support capabilities.

Comment: The PBOC’s strong push for AI applications in finance indicates its ongoing emphasis on digital thinking and recognition of the profound impact of technological progress on the financial industry. Applying AI in finance can improve service efficiency, reduce operational costs, and enhance customer experience, aiding the industry’s digital transformation and innovative development.

NO.2 Central Bank conducts 26.5 billion yuan 7-day reverse repurchase operation

On March 11, the PBOC conducted a 26.5 billion yuan 7-day reverse repo at an interest rate of 1.40%. Due to 40.5 billion yuan of reverse repos maturing on the same day, the market achieved a net withdrawal of 14 billion yuan.

Comment: Huafu Securities’ research report suggests that considering the tax period and government bond disturbances in the middle and late March, there is a possibility of over-rolling 6-month buyback reverse repos and MLF operations, but the overall scale is expected to be relatively limited.

NO.3 World Gold Council: Approximately $5.3 billion inflow into physical gold ETFs globally in February

According to the World Gold Council, in February 2026, global physical gold ETF inflows continued, reaching about $5.3 billion, marking the strongest start to the year in recent years and the ninth consecutive month of net inflows. In February, total holdings of gold ETFs worldwide rose to a record high, increasing by 26 tons to 4,171 tons, while gold prices further increased, pushing the total assets under management (AUM) to a record $701 billion.

Comment: The strong inflow into physical gold ETFs reflects increased investor demand for safe-haven assets, related to current geopolitical uncertainties and global economic instability. Gold’s appeal as a safe-haven asset has not only driven its price higher but also contributed to the record high in asset management scale.

NO.4 Spot gold surpasses $5,200 per ounce

On March 11, spot gold broke through $5,220 per ounce, rising 0.53% intraday. Market analysts indicate that the gold market is currently facing a tug-of-war between bullish and bearish forces. On one hand, geopolitical uncertainties support safe-haven demand; on the other hand, fluctuations in the dollar and bond yields are limiting the upward potential of gold prices.

Comment: China Post Securities pointed out that the value of gold allocation will re-emerge after panic-driven liquidity concerns ease. In the long term, conflicts may lead to higher oil prices and inflation expectations, with stagflation potentially becoming the main market theme. Coupled with the Federal Reserve’s balance sheet reduction policy, this could pose unmanaged risks to long-term U.S. bonds, making gold a worthwhile addition.

NO.5 Another one! Ping An Bank to close personal “gold trading” channels

On March 10, Ping An Bank announced on its official website that, starting April 1, 2026, it will gradually shut down its agency of personal precious metals trading at the Shanghai Gold Exchange, depending on circumstances. According to publicly available information, Ping An Bank is the latest bank this year, after Postal Savings Bank, to publicly announce the complete exit from such business.

Comment: An insider from a listed bank stated that regulators have been requiring stricter risk controls on financial derivatives. Banks acting as agents for individual clients’ gold exchange trading, which involves leverage and high risk, are likely to phase out these services. Currently, banks may prefer to let existing clients naturally exit or discourage new ones through other means. Given the sustained high and volatile gold prices, the personal “gold trading” channel is unlikely to reopen.

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