bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Reuters

China has granted licences to import gold to two foreign banks for the first time, sources said, as moves to open the world's biggest physical bullion market gather pace.
Allowing more banks to import gold could increase the supply of the metal into the country, easing local prices that are higher than in most other Asian countries.
China's gold imports more than doubled last year to over 1,000 tonnes - the country ousting India as the biggest buyer - as demand soared to unprecedented levels during the first annual drop in international prices in 12 years.
Australia and New Zealand Banking (ANZ) and HSBC were awarded import licences late last year, two sources with direct knowledge of the matter said.
Other trading sources said China Everbright Bank has also received approval to join the nine local banks already allowed to ship gold into China. Beijing strictly controls how much the banks import through a quota system.
ANZ and HSBC declined to comment. Everbright could not immediately be reached for comment.
"China is actually increasing its transparency. I think there will possibly be further access to other banks as well," said Cameron Alexander, manager of Asian precious metals demand at metals consultancy GFMS.
China faced a supply crunch early last year when a sharp plunge in gold prices released pent-up demand that eroded inventories at banks and jewellery sellers.
Premiums in China tend to be higher, as supply is tighter than in other parts of Asia owing to the quota system and the limited number of import licences.
Premiums are about US$15 an ounce over London prices, compared with less than US$2 in Singapore and Hong Kong. They rose to a record high of US$30 in April and May last year.
Mainland China imported 1,060 tonnes of gold from Hong Kong in the first 11 months of last year. Beijing does not release gold trade data, so numbers from Hong Kong - the main conduit for gold - provide the best estimate of imports.
But traders warned the award of the new licences did not necessarily mean that imports would jump sharply from last year's record volumes, as the level of demand would be the main factor driving shipments. But they added that the move indicated appetite for gold would likely be strong.


2 foreign banks get licences to import gold into China

China has overtaken India as the world's largest importer of gold. Photo: Reuters

Shanghai Gold Exchange to launch international board in free-trade zone

All buying and selling of spot bullion in China has to happen through the Shanghai Gold Exchange. Photo: Mark Footer

China's gold imports drop 42pc

Gold demand from retail investors has declined after strong purchases in recent months amid steady prices. Photo: AFP

Chow Tai Fook Jewellery profit surges 92.3 per cent on gold rush

A Chow Tai Fook employee inspects a jade ring. The company's store revenues came mostly from mainland customers. Photo: Bloomberg

Business

Commodities

China has granted licences to import gold to two foreign banks for the first time, sources said, as moves to open the world's biggest physical bullion market gather pace.
