China’s gold imports surge to record high as appetite increases, middle class seek wealth security
- China imported a record high 1,447 tonnes of gold for non-monetary use last year, with the value increasing ninefold from three years ago to US$90 billion
- China’s middle class are seen to be attempting to preserve their dwindling fortunes caused by the property market crisis and slumping stock market
China’s appetite for gold rose to record high levels last year, as investors sought to secure their assets and limit uncertainties caused by a weak yuan, an ongoing property slump and fears over a stock market rout.
Imports of gold for non-monetary use – products including gold jewellery – rose to 1,447 tonnes last year, breaking the previous record of 1,427 tonnes in 2018, according to the General Administration of Customs.
The weight marked a sevenfold increase from 2020, while the US$90 billion value represented an almost ninefold increase from three years ago.
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“Facing the property and stock market slump, global geopolitical instability, and the fall of the Chinese yuan’s exchange rate, gold purchasing is currently the best way for Chinese residents to preserve their wealth,” said Peng Peng, executive chairman of the Guangdong Society of Reform.