According to data released on Thursday, China’s net gold imports via Hong Kong increased by approximately 37% in November compared to the previous month. This rise in imports comes as the world’s largest consumer of gold eased some import restrictions on the metal in anticipation of demand for the upcoming Chinese New Year.
In November, net imports amounted to 36.801 metric tons, up from 26.793 tons in October. On a year-on-year basis, November’s net imports saw a significant increase of 118.4%.
Total gold imports via Hong Kong also rose by 37% to 46.049 tons compared to the previous month and increased by 120.9% compared to the same period last year.
Bernard Sin, the regional director of Greater China at MKS PAMP, noted that China utilized some import quotas and relaxed certain import restrictions towards the end of the year in preparation for the Chinese New Year in February. He expects imports to continue via Hong Kong and the rest of the world in December.
It’s important to note that the data from Hong Kong may not provide a complete picture of Chinese gold purchases, as gold is also imported through Shanghai and Beijing.
The People’s Bank of China regulates the amount of gold that enters the country through quotas issued to commercial banks.
In addition to the increased imports via Hong Kong, China also experienced higher gold shipments from Switzerland last month compared to the previous month.
The value of China’s gold reserves rose to $145.7 billion at the end of November, up from $142.17 billion at the end of October.
Chinese gold dealers sold gold at premiums ranging from $20 to $58 an ounce over global benchmark spot prices in November, a slight decrease from the $25 to $60 range observed in October.
