Trade Resources Economy The Chinese Mainland Considers Easing Restrictions on Imports of Gold

The Chinese Mainland Considers Easing Restrictions on Imports of Gold

Tags: Yellow Metal

The Chinese mainland's gold purchases from Hong Kong in 2015 may hold around this year's levels as physical demand in the world's biggest consumer remains stable and the country considers easing restrictions on imports.

Net imports slumped 32 percent to 692 metric tons from January through November compared with the same period last year, according to Bloomberg calculations based on data from the Hong Kong Census and Statistics Department.

Yellow Metal Purchases From Hong Kong 'Will Hold Steady'

The figures do not represent all imports of the metal by the mainland, which does not publish such data.

Prices are headed for a second annual loss after plunging by the most in three decades last year as the dollar's rally and a surge in equities cut demand for the precious metal as a store of value.

Mainland demand may total as much as 950 tons this year, down from last year's record 1,275.1 tons, Albert Cheng, managing director for Far East region at the World Gold Council, said on Dec 3. Demand this year held up compared with a long-term trend and is higher than 2012 levels, he said.

Mark To, head of research at Wing Fung Financial Group, a trader and refiner in Hong Kong, said: "Physical gold demand is actually really stable and there is no reason the Chinese people, whether rich or poor, will change their preferences for gold as gifts.

"You can see that investors realize the times have changed and there is no more liquidity-induced speculation."

China is said to be considering easing restrictions on gold imports.

It began offering international institutions access to yuan-based gold contracts in the China (Shanghai) Pilot Free Trade Zone in September in a move seen as an effort to extend its influence over prices.

China's net imports totaled 87.2 metric tons in November, the highest since February, according to Bloomberg calculations based on data from the Hong Kong Census.

Source: http://www.chinadaily.com.cn/business/2014-12/31/content_19207767.htm
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Yellow Metal Purchases From Hong Kong 'Will Hold Steady'
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