China's gold imports from HK hit record high
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China.org.cn, January 12, 2012
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Demand for gold has been surging in recent years. [File photo] |
![Demand for gold has been surging in recent years. [File photo]](http://images.china.cn/attachement/jpg/site1007/20120112/001aa0ba5c85107898e517.jpg "Demand for gold has been surging in recent years. [File photo]")
According to the Census and Statistics Department of the Hong Kong government, mainland China imported 102,779 kilograms of gold from Hong Kong in November, up from the 86,299 kilograms in October. This also marks the fifth consecutive increase. In the first 11 months of 2011, Chinese mainland bought a total of 389,295 kilograms from Hong Kong.
Demand for gold is climbing in China as investors seek to protect their wealth against sluggish property equity markets. Individuals buying gold bars or jewelleries account for the majority of China's gold consumption. In the third quarter of last year, China overtook India as the largest gold jewelry market, according to the World Gold Council. The country is also the world's biggest producer of gold.
Imports were profitable as prices in Hong Kong mostly traded at a discount to those in China in November. Gold for immediate delivery of 99.99 percent purity on the Shanghai Gold Exchange averaged 356.05 yuan a gram ($1,753 an ounce) in November, compared with an average of 434.68 Hong Kong dollars (353 yuan) at the Chinese Gold & Silver Exchange Society.
Xia Bin, adviser to the country's central bank last month called on China to increase its gold reserves as a long-term strategy to diversify its foreign exchange reserves and promote yuan's internationalization.
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