CHINA'S net gold imports via Hong Kong jumped nearly 40 per cent to an over 4-year high in August, data showed on Monday (Sep 26), as demand continued to rebound in the world's biggest consumer of the metal.
Net imports stood at their highest since June 2018 at 68.227 tonnes in August, compared with 48.773 tonnes in July, data from the Hong Kong Census and Statistics Department showed. Meanwhile, total gold imports via Hong Kong, which include re-exports, were up nearly 33.3 per cent to 71.855 tonnes.
"The jump in imports, I suspect is reflecting the fact that gold (in China) is trading at such significant premiums over local London spot. If you have got significant premiums being traded out there, metal will naturally flow into the region," said independent analyst Ross Norman.
The big cities in China coming out of lockdown may have released the pent-up demand, added Norman.
Through August, Chinese dealers sold gold at anywhere between a premium of US$4 to US$16 an ounce to global benchmark spot prices. Last week premiums climbed to as much as US$40, helped by strong demand for the bullion.
The People's Bank of China controls how much gold enters the country through a system of quotas given to commercial banks.
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.
Swiss exports of gold to China fell in August from July's 5-1/2-year high, Swiss customs data showed last week. REUTERS