Chinese gold imports from Hong Kong on the rise again

China imported significantly more gold from Hong Kong in the month of September than in previous months, according to the report Reuters based on the latest figures from the Hong Kong Census and Statistics Department. Hong Kong is an important transit port for mainland China, and a lot of gold enters the country through this route. Therefore, these import figures give a good indication of China's demand for physical gold.

In September, China imported a net 97.24 tonnes of gold from Hong Kong, up from 59.32 tonnes in the month of August. Imports rose for the third month in a row, reaching the highest level since September last year.

More demand for gold in third quarter

In the third quarter, China imported a total of more than 211 tonnes of gold via Hong Kong, much more than in previous quarters. The increased demand for gold is directly related to the decline in the Gold price and the crash of the Chinese stock market in the summer.

The rising premiums on gold on the Chinese gold market also gave a boost to the market, according to Reuters. Due to the increased spread between the global gold price and the price of the precious metal in China, it was more attractive for banks to import gold.

Chinese gold imports via Hong Kong to highest level since September 2014

GFMS

Research firm Thomson Reuters GFMS expects gold demand from China to remain high in the fourth quarter and that the second half of the year will be significantly better than the first half.

Earlier this week Published The research firm published its figures on the global gold market in the third quarter and it showed that the demand for gold bars and Gold Coins was a quarter higher than in the previous quarter and the third quarter of 2014. In China, demand for investment gold even rose by 30% in the third quarter.

Still, the research firm does not expect demand for gold in China this year to surpass the 2013 record. Then a big drop in the price of gold worldwide unleashed a stampede on both jewelry and investment gold. In that year, China imported a record 1,128 tonnes of gold from Hong Kong.

Cumulative imports of gold via Hong Kong