TD Securities notes that the Shanghai Gold Exchange has admitted four major Chinese life insurance companies as members under a new pilot program, potentially paving the way for a significant surge in institutional gold demand.

The inclusion grants these insurers access to purchase gold directly through the exchange—marking a notable shift in policy that could expand the network of domestic buyers. Together, the four firms manage nearly CNY13 trillion in assets, representing close to two-thirds of the total potential demand that could emerge under the program.

TD Securities says this development could generate a “massive new buying impulse” for gold, as institutional capital flows increasingly into the precious metal amid a changing regulatory landscape.