China imported more than 1,100 tonnes of gold in the first eight months of 2026, the highest level since at least 2017, according to data from the country’s General Administration of Customs. The value of those imports reached $158.8 billion. A combination of strong investment demand, a favourable exchange rate and a new import licensing regime has encouraged record buying.
What is driving the import surge?
Zijie Wu, an analyst at Jinrui Futures Co., said robust investment demand has kept the gold price at a slight premium in China, which incentivises imports. He noted that the yuan has remained strong this year, creating favourable conditions for gold buying and allowing regulators to grant more generous import quotas. In June the government also introduced a new import licensing system that prompted banks to use up existing quotas, giving an additional boost.
Ole Hansen, head of commodity strategies at Saxo Bank, pointed out that Chinese investors are turning to gold as an alternative to property and equities. Unlike in the West, where rising interest rates and bond yields raise the opportunity cost of holding bullion, China’s short- and long-term yields are significantly lower. That reduces the cost of holding gold and makes it more attractive.
Mixed signals in the domestic market
Not all indicators point to red-hot demand. Gold withdrawals from the Shanghai Gold Exchange (SGE) fell 22% month-on-month in August to 62 tonnes. According to the World Gold Council (WGC), this reflects “cooling momentum in bullion investment and still tepid gold jewelry demand overall.” However, gold exchange-traded funds (ETFs) in China added 11 tonnes in August, offering a more convenient way for investors to gain exposure to the metal.
The WGC said Chinese gold investment will likely depend on price trends in the final months of 2026, but added that “falling yields and equity market uncertainties may provide support.” Jewelry demand, meanwhile, has historically picked up in the fourth quarter as retailers restock ahead of the peak season.
Lisa Liu, managing director at Gold Mountain Asset Management, said the shift into gold “is not a short-term trade. It’s a multiyear repositioning of household and official assets.” She said the scale and persistence of Chinese buying is now a core driver of global gold prices and is likely to continue as long as uncertainty over growth and geopolitics remains.
Central bank buying: official and off‑book
The People’s Bank of China (PBoC) added another 20.2 tonnes of gold to its official reserves in August, marking the 23rd consecutive month of reported purchases. Official holdings now stand at 2,386 tonnes. So far in 2026, the central bank has increased its reported reserves by around 80 tonnes. China’s holdings of US Treasury bonds fell to $618 billion in July, the lowest since August 2008, further underscoring the shift away from dollar assets.
Analysts have long suspected that China’s actual gold reserves are significantly larger than officially stated. Researcher Jan Nieuwenhuijs has estimated that the PBoC secretly holds more than 5,000 tonnes of monetary gold — more than twice the admitted figure. Goldman Sachs echoed that view in a note published earlier this month, estimating that the PBoC bought 35 tonnes of gold in July, compared with the 20 tonnes it officially reported.
Key takeaways
- China imported over 1,100 tonnes of gold in January–August 2026, the highest in at least nine years.
- Strong investment demand, a firm yuan, and a new import licensing regime drove the increase.
- Domestic demand is mixed: SGE withdrawals fell in August but ETF buying surged, and jewelry demand may pick up seasonally in Q4.
- The PBoC continues to buy gold both officially and via unacknowledged purchases, with total holdings possibly above 5,000 tonnes.
Common questions
Why are Chinese gold imports at record levels?
Investment demand has kept gold at a premium in China, while a strong yuan and a new licensing system have made importing easier and more attractive. Investors are also shifting away from property and equities toward gold as a store of value.
How much gold does China really hold?
Officially, the PBoC holds 2,386 tonnes. Independent researchers and investment banks believe the true figure is above 5,000 tonnes, based on analysis of trade data and other indirect evidence.
Does buying gold ETFs in China count as physical demand?
ETFs offer a liquid way to gain gold exposure, but owning ETF shares is not the same as holding physical bullion. Physical demand is better measured by SGE withdrawals, which were weak in August, though ETF inflows were strong.
Chinese demand remains a structural force in the gold market. For the latest price movements, see the live gold price.