WHY IT'S IMPORTANT

As the world's leading gold consumer, China's purchasing activities can significantly influence global gold markets.

The Hong Kong data may not provide a complete picture of Chinese purchases, as gold is also imported via Shanghai and Beijing.

BY THE NUMBERS

Net imports via Hong Kong to China for August stood at 26.746 metric tons, compared to 43.923 tons of net imports in July.

China's total gold imports via Hong Kong reached 40.892 tons in August, down 29.85% from 58.296 tons in July.

CONTEXT

China's gold imports in August fell 3.4% from July, customs data showed on Saturday.

Dealers in the top gold consumer last week offered discounts of $21-$36 per ounce over global benchmark spot prices , the deepest since May 2020, compared to $17-$24 the previous week.

China's central bank added gold to its reserves in August, extending purchases into a 10th straight month, official data showed.

Spot gold hit a record high of $3,790.82 earlier this week.

KEY QUOTE

The drop in net imports via Hong Kong is driven by "continued economic stress that is severely undermining jewellery demand", StoneX analyst Rhona O'Connell said, adding that there has been a partial shift towards platinum jewellery given the difference in price of the two metals.

Global demand for platinum jewellery is expected to rise by 11% to 2.2 million troy ounces in 2025, the World Platinum Investment Council said.

"The weakness in offtake has seen Shanghai (gold) prices go to a deep discount to offshore prices," O'Connell said.