China's May net gold imports via Hong Kong up as curbs ease

CHINA’S net gold imports via Hong Kong jumped 58.3 per cent in May from the previous month, Hong Kong’s official data showed on Monday (Jun 27), as pandemic-related curbs were relaxed in major cities.

Net imports stood at 8.281 tonnes, according to the Census and Statistics Department. Imports were, however, down 62 per cent year-on-year.

Total gold imports via Hong Kong rose nearly 47 per cent to 14.13 tonnes from April.

The rise in May could reflect of some of the restrictions being eased in Shanghai and Beijing, said StoneX analyst Rhona O'Connell.

China imports gold also via Shanghai and Beijing, so Hong Kong data may not provide a complete picture of the country's gold purchases.

Shanghai and Beijing began to gradually loosen Covid-curbs by late May.

China typically imports most of its gold from Australia, South Africa and Switzerland and the People's Bank of China controls how much gold enters China through a system of quotas given to commercial banks.

"The overall physical market is still relatively quiet," especially with Chinese consumers still nervous of discretionary spending," O'Connell said.

Swiss customs data showed last week that its shipments of gold to China fell in May.

Consultants Metals Focus forecast in a report earlier this month a drop in global gold demand this year, mainly due to weaker jewellery sales and retail investment in China due to lockdowns and an economic slowdown.

Throughout May, gold changed hands in China at prices ranging between US$10 an ounce below global spot prices to on par with the benchmark.

But the market has largely swung back to a premium, pointing to a recovery, Standard Charted analyst Suki Cooper said in a note on Friday. REUTERS