The mainland's net gold imports from Hong Kong fell 26 per cent in August from a year earlier as consumption of the precious metal across the border weakened as a result of surging gold prices.
Hong Kong shipped 53.508 tonnes of gold to the mainland in August and imported 24.193 tonnes. The net exports, at 29.315 tonnes, were the lowest since January, according to official trade data from the Hong Kong Census and Statistics Department.
Gold demand from the mainland remained strong in the first half of this year before declining in August. Official statistics show imports of the metal between January and July were more than four times as much as in the same period last year.
"August was a turning point for international gold prices this year when it rose quickly to a relatively high level. It made people more cautious when purchasing bullion or gold jewellery," said Fung Chi-kin, honorary permanent president of the Chinese Gold & Silver Exchange Society.
The economic slowdown has also been another reason why people have been holding back on their gold purchases, he added.
Gold fell from a high of US$1,900 per ounce last year to around US$1,600 in the middle of this year.