CHINA’S net gold imports via Hong Kong in July rose by about 17 per cent from the previous month, the first increase since March, data showed on Tuesday (Aug 27).
China imported a net 25.659 tonnes in July, up from 21.919 tonnes in June, the Hong Kong Census and Statistics Department data showed.
Total gold imports via Hong Kong were up over 6 per cent at 31.457 tonnes.
China is the leading consumer of bullion, and its purchasing patterns can affect global prices.
China’s central bank paused gold purchases in May, with July marking the third consecutive month it did not buy for its reserves. However, several Chinese banks have been given new gold import quotas from the central bank, anticipating revived demand despite record high prices, four sources with knowledge of the matter told Reuters earlier this month.
The quotas help the People’s Bank of China (PBOC) control how much bullion enters the country.
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“With respect to China, it’s all still about weakness in demand for jewellery on the mainland because of uncertainty over discretionary spending, but at the retail investment level, interest in coins and bars is relatively resilient,” said StoneX analyst Rhona O’Connell.
“I think the uptick in imports is just a knee-jerk reaction by some positioned players in the Chinese banking sector, who continue to buy some metal internationally,” said independent analyst Ross Norman.
The Hong Kong data may not provide a complete picture of Chinese purchases, as gold is also imported via Shanghai and Beijing.
Industry officials anticipate that gold demand in China will increase in the coming months as consumers adapt to higher prices. Economic uncertainty and worries about currency weakness are expected to boost investment flows.
Spot gold has risen over 21 per cent so far this year, scaling an all-time high of US$2,531.60 per ounce last week. REUTERS
