Author: Paul Ploumis22 Apr 2014 Last updated at 02:09:06 GMT
BEIJING (Scrap Monster): Amidst an array of apprehensions, China has started to encourage gold imports through Beijing to widen its official reserves. However, it is said that China’s massive accumulation of gold intends to diversify from U.S. Treasuries that is the biggest holder of gold reserves with over 8,000 tonnes.
The direct import of gold via capital would aid Beijing to become one of the chief gold spots after Shenzhen and Shanghai where 70 percent of the Chinese gold jewelry business is located.
As per the report, China’s imports of gold centered on Hong Kong which was calculated as net gold trade of the country but Beijing didn’t publish its bullion trade data then. Last year, Hong Kong traded $53 billion (31 billion pounds) worth of gold to Beijing. According to the sources, China has opened gold trade in Beijing because the country wants to avoid the transportation of gold via Hong Kong-to-Shenzhen route which could disclose its gold trade.
While gold had declined 28 percent in 2013, China marked a record gold consumption and its banks expanded their gold reserves. Meanwhile, China has already permitted 12 banks to import gold- Industrial and Commercial Bank of China Ltd <601398.SS>, Agricultural Bank of China Ltd <601288.SS>, ANZ and HSBC are among them. The central bank revealed its gold reserves had spiked to 1,054 tonnes from 600 tonnes in 2003.
Last year, China imported 1,160 tonnes of gold imported from Hong Kong apart from the domestic production, 428 tonnes.