Tag - China

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Sunday, August 13 2017

The Mechanics Of The Chinese Domestic Gold Market

The Chinese gold market is the world’s largest physical gold market. It is also one of the world’s most protected gold markets given that the importation of gold into China is still strictly controlled by the Chinese authorities, and the exportation of gold out of China is generally prohibited.

Hence, the market is often referred to as the Chinese ‘domestic’ gold market since gold flows and gold trading in the market are predominantly domestic in nature. Despite these trade restrictions, China still manages to be the largest importer of gold in the world. Furthermore, the Chinese gold mining sector is also the largest producer of gold in the world.

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Sunday, July 30 2017

China's first-half gold output falls, consumption up

China's gold output fell by 9.85 per cent from a year ago to 206.542 tonnes in the first half of 2017, state media said on Friday, citing data from the China Gold Association.

The country's consumption, however, was up by 9.89 per cent to 545.23 tonnes over the same period, said the People's Daily, leading to higher imports by the world's top gold consumer as indicated by data out of Hong Kong on Thursday.

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Estimated Chinese Gold Reserves Surpass 20,000t

My best estimate as of June 2017 with respect to total above ground gold reserves within the Chinese domestic market is 20,193 tonnes. The majority of these reserves are held by the citizenry, an estimated 16,193 tonnes; the residual 4,000 tonnes, which is a speculative yet conservative estimate, is held by the Chinese central bank the People’s Bank of China.

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Tuesday, June 6 2017

China's Gold Imports Seen Jumping 50% as Haven Demand Booms

Mainland China is set to import about 1,000 metric tons from the territory in 2017, said Haywood Cheung, president of the century-old exchange in Hong Kong which trades physical gold and silver. That compares with net purchases of 647 tons last year and would be the biggest since 2013, data from the Hong Kong Census and Statistics Department compiled by Bloomberg show.

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Thursday, May 18 2017

An update on SGE Vault Withdrawals and SGE Price Premiums

Year-to-date, which now includes the first four months of 2017, SGE gold withdrawals have reached 727 tonnes, which annualized equals 2181 tonnes, and would make 2017 the 3rd highest SGE vault withdrawal year on record, and only slightly behind the 2197 tonnes of registered withdrawals from the Exchange’s vaults in 2013. And since SGE gold withdrawals are a suitable proxy for wholesale Chinese gold demand, it would point to 2017 shaping up to be one of the strongest years ever for physical gold demand in the Chinese gold market.

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Friday, May 12 2017

SGE Trading Volumes surged by 43% in 2016 led by OTC and Deferred Trading

The growing influence of the Shanghai Gold Exchange (SGE), the world’s largest physical gold exchange, is a topic familiar to many. So it is not surprising that trading volumes at the SGE continued their dramatic rise in 2016, with a record 24,338 tonnes of gold traded across physical delivery and deferred settlement contracts.

Volumes in 2016 were a staggering 43% higher vis-a-vis the 17,033 tonnes traded on the SGE during 2015, which itself was a strong year, since 2015 volumes were 84% higher than the 9,243 tonnes of gold traded at the Exchange in 2014.

Therefore, in the space of three calendar years, the SGE has seen total trading volumes nearly triple, which is quite an achievement by any standard.

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Saturday, April 8 2017

Higher prices dent gold demand in Asia; China premiums rise

In top consumer China, premiums were around $10 to $12 per ounce against the international benchmark, up from last week's to $8 to $10.

Premiums in China had risen early this month as traders said supplies of the precious metal were limited due to tightening import restrictions to stem currency outflows.

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Wednesday, March 29 2017

Russia, China Lay Groundwork For BRICS Transactions in Gold

Recent progress made in streamlining trade in local currencies has brought Moscow and Beijing closer to creating a financial architecture that could facilitate transactions in gold.

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Saturday, March 18 2017

China gold premiums rise on limited supply

Gold premiums rose in China this week as traders said supply of the precious metal was limited due to tightening import restrictions to stem currency outflows.

Premiums climbed to over $20 an ounce against the international benchmark from $15-$17 last week.

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Tuesday, March 14 2017

Solving the Secret Behind the Chinese Gold Market

China, it seems, wants to make the rules in the international monetary system, which is why it has been acquiring vast amounts of gold through both private and official channels.

Because of the obscure nature of the Chinese gold market and the reluctance of Chinese officials to show their hand, nobody has been able to accurately calculate how much gold the Chinese have acquired since 2000, when they began amassing it.

Enter Koos Jansen, an analyst with Singapore bullion dealer BullionStar. He has studied the Chinese gold market for years and recently came up with an estimate of total Chinese gold holdings: 19,500 metric tons, or 21,495 U.S. tons, at the end of January 2017.

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Wednesday, March 8 2017

Midas touch: China's tech, financial firms eye virtual gold rush

China's virtual gifting market, typically the domain of plugged-in young consumers celebrating special occasions or flirting, is luring major financial institutions keen to boost trade of another auspicious commodity: gold.

Tencent's digital gold packets, known as "microgold", are backed by the country's biggest bank, Industrial and Commercial Bank of China (ICBC) (601398.SS). They allow users to send funds that track the real-time value of gold to friends over the firm's popular messaging platform WeChat.

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Tuesday, February 28 2017

China to boost gold output by 2020

China will increase its annual gold output to 500 tonnes by 2020 from around 450 tonnes currently, according to the Ministry of Industry and Information Technology (MIIT).

China has been the world's biggest gold producer for 10 years and the largest gold consumer for four years.

The country's gold output rose 0.76 percent year on year to 453.5 tonnes in 2016, with consumption hitting 975.4 tonnes.

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Monday, February 27 2017

Online channels shine with gold-backed financial products

Sellers of gold-backed financial products are expanding their online sales channels and attracting more investors to the precious metal as a hedging tool and asset safe haven, analysts have said.

More than 20 internet-based service providers have launched gold-backed financial management products so far, including Tencent Holdings Ltd, which started enabling users to give digital red packets of physical-gold-backed assets that can be transacted in real time.

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Thursday, February 16 2017

It’s only a matter of time before China has the biggest gold pile in the world

In total, since 2011, China has imported more than 5,000 tonnes. That’s more than is in the vaults of the International Monetary Fund (IMF), and more even than Germany’s holdings (around 3,400 tonnes). Another three years at a similar rate, and China will have imported more gold than there is at Fort Knox.

The cumulative impact is astonishing. Add China’s domestic production into the equation, as well as the recycling of scrap, and it seems that since 2009, more than 12,000 ounces of gold have either been produced in, or imported to, China.

It’s pretty easy to start drawing the conclusion that China is planning to return the world to some kind of international gold standard and thereby undermine US imperial and economic might by destabilising the dollar.

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Tuesday, February 14 2017

China Net Imported 1,300t Of Gold In 2016

For 2016 international merchandise trade statistics point out China has net imported roughly 1,300 tonnes of gold, down 17 % from 2015.

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Tuesday, February 7 2017

WeChat Introduces Gold Hongbao to Promote New Financial Product

WeChat began testing a new lucky money feature during the recent Chinese New Year holiday that enables transfers of gold bullion among users with the same mechanics for the existing cash hongbao (lucky money or red envelopes in Chinese).

With the gold hongbao (not official translation), like the cash hongbao, a sender can either send packets to certain persons or let the system randomly divide a certain amount into certain parts and send it to a chat group for group members to try their luck.

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Sunday, February 5 2017

China stocked up on Swiss gold as turbulent year came to a close

China’s gold imports from Switzerland soared at the end of last year when Beijing was struggling to defend the yuan and incoming US President Donald Trump was casting grave doubts about Sino-US economic ties.

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Thursday, January 26 2017

China Eats 62% of Global Gold Production

Chinese investors withdrew over 63.3 million ounces of gold from their primary gold exchange in 2016, the fourth highest on record.

To put that in perspective, it’s 64 times more than all of the gold Eagles sold by the US Mint last year.

Another way to look at it is this: check out how much of total global gold production those withdrawals represent.

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Wednesday, January 25 2017

China retains crown as world’s top gold consumer, amid softening yuan and financial market volatility

China remained the world’s No 1 gold consumer for a fourth straight year in 2016 as a weakening yuan and increased market volatility underpinned investment demand, which partially offset a slump in jewellery purchases as the economy slowed.

Gold consumption reached 975.38 tonnes in 2016, down 6.7 per cent from 2015, according to data from China Gold Association on Wednesday.

China’s gold production also topped the world for a 10th straight year, rising 0.76 per cent in 2016 to 453.486 tonnes.

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Friday, January 20 2017

Chinese Investors See Comfort in Gold ETF

Add a weakening yuan and capital outflows from China to the global forces helping boost demand for gold.

In the week through Monday, China attracted $52 million, the biggest inflow into commodity-linked exchange-traded funds of all countries tracked by Bloomberg. Huaan Yifu Gold ETF, China’s largest ETF backed by raw materials, is getting all the attention, attracting almost $72 million last week, more than enough to offset outflows from its peers.

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