Chinese gold imports from Hong Kong hit a 5-month high

Singapore (Oct 27)  Reuters has reported that China's net gold imports (via Hong Kong) rocketed nearly 60% in September. The data from the Hong Kong Census and Statistics Department showed that this would mean this is the highest level in five months.

Getting into the numbers, net gold imports via Hong Kong to China, stood at 34.786 tonnes in September compared with 21.804 tonnes in August. Total gold imports via Hong Kong rose to 41.877 tonnes from 24.549 tonnes. China held 62.64 million fine troy ounces of gold at the end of September, data from the central bank's State Administration of Foreign Exchange showed.

Lower gold prices in the international market as well as in local currency has attracted some more gold buying, said Commerzbank analyst Daniel Briesemann. "Even in China, inflation is picking and that is also behind higher gold buying."

BMO noted "China’s net gold imports via Hong Kong surged 65% m/m to 423tpa in September, from 257tpa in August, the highest level in five months, report Reuters. Demand was lifted amid contagion fears arising from the Evergrande situation, and softer prices in the international market as well as in local currency."

In China, premiums rose to $12 per ounce in September, over global benchmark prices. Spot gold fell 3% last month. The Hong Kong data may not provide a complete picture of Chinese purchases because gold is also imported via Shanghai and Beijing.

REUTERS