Chinese gold imports rose to a two-year high in June, underscoring resilient demand in the world’s biggest bullion market after a plunge in international prices.
Overseas purchases rose a third month to about 173 tonnes, according to the latest customs data, the highest mark since March 2024. Cheaper prices and a stronger renminbi kept investors interested, while banks were motivated to use up import quotas and stock up on bullion to meet retail commitments.
“Investors buying the dip is an important driver of recent demand,” said Zijie Wu, an analyst at Jinrui Futures. “Commercial banks need to build up their inventories to provide the physical backing for retail bullion sales and gold accumulation plans, as well as preserving some safety reserve for when demand spikes.”
Accumulation plans are offered by numerous banks and allow individuals to pick up gold in small increments. They are one of the main ways for Chinese retail investors to gain exposure to bullion.
Bullion-backed exchange-traded funds, another popular investment, have also seen net inflows of around 28 tonnes in 2026, according to a tally by the Shanghai Gold Exchange.
Banks hold licences to import gold based on strictly controlled quotas given out irregularly by the People’s Bank of China. Imports were also likely lifted by a new licensing regime from June 1, which would have encouraged banks to exhaust existing quotas.
Some banks may have booked shipments before June, but the gold would not have registered until later because of the time required for financing, transportation and customs paperwork, said Wu.
The domestic premium on gold that has persisted for most of the first half means that it is cheaper for banks to procure bullion from the international market, he said. BLOOMBERG
