Economists at Commerzbank analyze the figures for Gold imports in China.

China’s low Gold imports from Hong Kong not a sign of weak consumer demand

“According to data from the Census and Statistics Department of the Hong Kong government, China imported a good 22 tons of Gold from Hong Kong on a net basis in January. This was only roughly half as much as in December. 

“Refinitiv data show that physical premiums for Gold in China, that is to say, the surcharge payable on the global reference price level, amounted to as much as $30 per troy ounce in January. The decrease in gold imports cannot, therefore, be seen as a sign of weaker consumer demand. It is more likely the case that there was insufficient supply in China.”

“A week ago, the Swiss Federal Customs Administration had already published figures for Gold exports to China in January. They paint a mixed picture: whereas shipments to China likewise fell sharply to 26 tons, those to Hong Kong increased to 27 tons, their highest level since April 2019. This also points to robust Gold demand in China following the end of the coronavirus restrictions.”