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China wants to simplify the procedures for importing gold, so that it becomes easier to import gold from abroad. import. In China, only banks that have a special license are allowed to import gold, and they must ask for permission for each shipment of gold. The latter is about to change, because with a new type of license, gold dealers who trade a lot of volume can now handle a maximum of twelve shipments at a time.
The new rules will apply from June 1 and will cover gold trading in Beijing, Shanghai, Guangzhou, Qingdao, Nanjing and Shenzhen. In practice, this means that the amount of paperwork and administration can be greatly reduced, Jiang Shu of Shandong Gold Financial Holdings Capital Management told Bloomberg.
"In the past, importers had to ask the central bank for an import quota and then prepare a report for each basket of gold and register it with the central bank."
In the future, this will be a lot easier, because importers will be able to register multiple imports of gold at once.
The demand for gold in China has increased sharply in recent years, as the economy grows and incomes rise. This encourages Chinese people to buy more gold jewellery, gold bars and coins. The demand for gold is far greater than the supply, with the result that China has to import almost a thousand tons of the yellow metal from abroad on an annual basis.
China's central bank also continues to buy gold. The central bank sees the precious metal as a form of diversification and therefore adds several tons of gold to its reserves every month. At the moment, the country only has 2% of its total reserves in yellow metal.
The Chinese gold market continues to develop at a rapid pace. China launched its own gold price fixing on April 19th and recently we wrote on Hollandgold about the trading platform that China and Russia in order to be able to trade gold more easily. And that is happening more and more, because the Russian VTB Bank intends to export 100 tonnes of gold to China every year. export.
