Staff Reporter

In March, China’s gold imports through Hong Kong surged by 41.9% compared to February, according to data released by the Hong Kong Census and Statistics Department on Monday.

Despite this increase, China’s net gold imports via Hong Kong remained below its exports for the third consecutive month. China is the world’s largest gold consumer, and its buying habits can significantly impact global gold prices.

It’s important to note that the Hong Kong data might not fully capture China’s gold purchases, as imports also occur through Shanghai and Beijing.

In March, China’s net imports from Hong Kong amounted to -4.889 metric tons, an improvement from -26.398 metric tons in February.

However, total gold imports through Hong Kong reached 21.071 metric tons in March, up from 14.851 tons the previous month.

“Overall, for the quarter, Hong Kong acted as a net importer from China due to weak domestic demand. The net import figure for March was five tons, compared to an average of 15 tons per month during January and February, suggesting a gradual recovery in mainland demand,” said StoneX analyst Rhona O’Connell.

“Anecdotal evidence from April indicates that net exports into China may occur this month, as demand has notably increased. The People’s Bank of China is reported to have assigned new import quotas to select international banks recently.”

Gold, seen as a safeguard against global uncertainties and inflation, has risen more than 25% in 2025.

This increase has been driven by various factors, including tariff plans from former President Trump, anticipated interest rate cuts by the Federal Reserve, geopolitical tensions in the Middle East and Ukraine, robust central bank purchases, and a rise in investments in gold-backed exchange-traded funds.

In related news, gold discounts in India spiked last week, reaching the highest level in nearly nine years as record prices discouraged buyers.