CHINA’S net gold imports via Hong Kong fell about 23 per cent in May to their lowest in eight months as its central bank held off against adding any gold to its reserves last month, Hong Kong Census and Statistics Department data showed on Tuesday (Jun 25).
Net imports into the world’s top gold consumer stood at 26.722 tonnes in May, compared with 34.575 tonnes in April, the data showed.
Total gold imports via Hong Kong were down about 19.3 per cent at 34.897 tonnes.
China is the biggest bullion consumer and its buying trends can have bearing on global prices.
The Chinese central bank, which controls the amount of gold entering the country via quotas to commercial banks, was the largest official sector buyer of gold in 2023.
“Total gold exports to China look about par for the course, but the interesting thing we are seeing is a jump in exports to the rest of South-East Asia, underlining the change in sentiment as Asia bought into a rising price. Historically, it has been the other way round,” StoneX analyst Rhona O’Connell said.
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The Hong Kong data may not provide a complete picture of Chinese purchases, as gold is also imported via Shanghai and Beijing.
The drop in imports via Hong Kong comes as China’s central bank held off gold purchases to its reserves last month, when spot gold prices hit a record high after 18 months of consecutive purchases.
The news of China holding off gold purchases sent spot prices tanking 2 per cent on Jun 7 before US economic data hit another blow to its appeal, making prices finally log a 3.5 per cent drop – its worst single-day decline in over three and a half years.
Elsewhere, Switzerland – the world’s biggest bullion refining and transit hub, exported sharply lower gold supplies to Hong Kong at 1,535 kg (kgs) in May, from 7,710 kgs in April, while those to China were largely steady.
Spot gold was trading around US$2,326 per ounce by 1247 GMT. REUTERS
