China’s gold imports through Hong Kong nearly tripled month over month in April, the Hong Kong Census and Statistics Department announced on Monday.
Net imports to China via Hong Kong stood at 43.462 metric tons in April, up from the 4.889 metric tons in March, representing the highest level since March 2024. China’s total gold imports via Hong Kong reached 58.61 metric tons in April, up 178.17% from the 21.07 tons recorded in March, also a more than one-year high.
ANZ commodity strategist Soni Kumari told Reuters that Chinese gold imports via Hong Kong were low in the first quarter despite overall demand remaining strong. She said that a relatively low premium over the international spot price depressed import demand in Q1.
“That led to supply tightness, and that pushed the spot premium higher,” Kumari said. “And when the spot premium is high, that incentivizes imports. Central bank buying demand also may have prompted to import more gold.”
Customs data for all regions released May 20 was also in line with the Hong Kong release, showing China imported more gold last month than they had in nearly a year, and this despite bullion prices setting a new historic high of $3,500 per ounce in April.
Total gold imports to China reached 127.5 metric tonnes last month, an 11-month high, and represented a 73% rise from March’s figure, even though gold prices were in uncharted territory at the time.
The surge in gold imports was due in part to the People’s Bank of China (PBoC) issuing additional import quotas to some commercial banks in April, as the central bank was compelled to respond to strong demand from institutional and retail investors at what proved to be the peak of U.S.-China trade war anxiety.
Story by Ernest Hoffman
