China’s net gold imports via Hong Kong fall 50% in September

CHINA’S net gold imports via Hong Kong halved from the previous month in September, data showed on Tuesday (Oct 25).

Net imports stood at their lowest since May at 33.896 tonnes in September, compared with 68.227 tonnes in August, data from the Hong Kong Census and Statistics Department showed.

Meanwhile, total gold imports via Hong Kong were down 48 per cent at 37.271 tonnes.

Logistical issues caused by the zero-Covid policy in China could have led to the drop in imports, said independent analyst Ross Norman.

“The import numbers reaffirm the idea that logistical issues and hot demand are keeping Chinese gold premiums really elevated.”

A strict ‘zero-Covid’ policy has been a major obstacle for the world’s second-largest economy, raising concerns about a global recession.

China’s central bank controls how much gold enters the country through a system of quotas given to commercial banks.

Through September, Chinese dealers sold gold at anywhere between a premium of US$18 and US$45 an ounce to global benchmark spot prices. Premiums have remained elevated as PBOC tries to control the outflow of the yuan to shore up the currency’s value.

“Domestic supply is relatively constrained in China and there is robust buying interest,” StoneX analyst Rhona O’Connell said.

The Hong Kong data may not provide a complete picture of Chinese purchases, as gold is also imported via Shanghai and Beijing. China usually imports most of its yellow metal from Australia, South Africa and Switzerland.

Meanwhile, last week, Swiss customs data showed gold exports to China increased in September. REUTERS