Chinese investors snap up gold ETFs in first quarter amid global economic uncertainty
exchange-traded funds (ETFs) tracking gold in the first quarter of the year, as prices surged to record highs on rising geopolitical tensions amid the second term of US President Donald Trump.
Advertisement
According to a report from the World Gold Council on Wednesday, Chinese investors poured a total of 16.7 billion yuan (US$2.3 billion) into gold ETFs in the first quarter, increasing their total holdings by 23 tonnes – the highest quarterly net inflow on record. The council is a London-based international trade association.
The surge pushed the total assets under management and aggregate holdings of China's gold ETFs to all-time highs of 101 billion yuan and 138 tonnes, respectively.
Chinese investors' enthusiasm for gold ETFs was in line with global market trends. Total gold investment – including gold bars, coins, and ETFs – reached 552 tonnes in the first quarter. Chinese purchases of gold bars and coins accounted for 124 tonnes, representing 38 per cent of the global total, while Chinese gold ETF purchases made up 10 per cent of global demand at 226 tones, the gold council said.
'It's been a bumpy start to the year for global markets as trade turmoil, unpredictable US policy announcements, sustained geopolitical tensions and a return of recessionary fears have created a highly uncertain environment for investors,' said Louise Street, a senior markets analyst at the World Gold Council. 'In this context, investment demand for gold has paved the way for the highest level of first-quarter demand since 2016.'
Advertisement
'Over the past 10 months, investors have returned to gold ETFs, ramping up their allocations since Q3 last year, and already in April, Asian inflows have stormed past their Q1 total. However, there is still room for growth, with global gold ETF holdings sitting 10 per cent below their 2020 high.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
2 hours ago
- South China Morning Post
Trump narrows Fed chair candidates to 4, excluding Treasury Secretary Bessent
US President Donald Trump said on Tuesday that he has whittled down his list of potential Federal Reserve chair candidates to four as he considers a successor to Jerome Powell – a choice that could reset the path of the US economy. Asked on CNBC's Squawk Box for a future replacement for Powell, Trump named Kevin Hassett, director of the National Economic Council, and Kevin Warsh, a former member of the Federal Reserve Board of Governors. 'I think Kevin and Kevin, both Kevins, are very good,' Trump said. He said two other people were also under consideration, but US Treasury Secretary Scott Bessent is not among them. 'I love Scott, but he wants to stay where he is,' Trump said. He did not name his other two top candidates but used the opportunity to disparage Powell, whom he has dubbed 'too late' in cutting interest rates. 01:21 Trump and US central bank chief bicker over bank renovation costs Trump and US central bank chief bicker over bank renovation costs The news that Trump plans to make a decision on the Fed chair 'soon' comes as the Republican president has been highly critical of Powell, whose term ends in May 2026.
South China Morning Post
9 hours ago
- South China Morning Post
Trump tariff threats loom over China's Russian oil purchases, following his move on India
Even in the face of threats by US President Donald Trump to levy tariffs on countries that import Russian goods, analysts expect that China 'will not stop' buying oil from its northern neighbour, given their mutually beneficial relationship of energy cooperation. Oil from Russia will continue to flow south over the long run because 'China's strategic goals require a stable and secure supply of critical resources such as oil', said Matt Gertken, chief geopolitical strategist at BCA Research in Canada. His comments came with Trump sharpening his threat of sanctions on Russia if it fails to engage in a ceasefire in Ukraine, where Moscow has waged war for the last three and a half years. Previously, both the United States and the European Union announced blanket sanctions on Russia, and they also tried to cut off its lifelines by threatening secondary sanctions on those helping it. 'The US said at the time that it would implement those [tariff] threats by August 7-9 if trade with Russia was not curtailed by then, and affirmed that China would be a target,' Gertken added. 'The US has already taken action on India, so China is next in line.' Russia is China's top source of crude imports, supplying a record high 108.5 million tonnes, or 19.6 per cent of its total imports, last year. Guo Jiakun, spokesman for China's Ministry of Foreign Affairs, said at a press conference last week that 'China will take energy supply measures … based on national interests', while 'tariff wars have no winners'.
RTHK
10 hours ago
- RTHK
'HK and Macau to leverage collaborative strength'
'HK and Macau to leverage collaborative strength' John Lee led a delegation to Macau to meet his counterpart Sam Hou-fai. Photo courtesy of Information Services Department Chief Executive John Lee emphasised the crucial roles of the Hong Kong and Macau SARs within the Greater Bay Area during an official visit to Macau on Tuesday. Leading a high-level delegation, Lee met with Macau Chief Executive Sam Hou-fai. In a statement following the meeting, Lee said the two SARs will continue to harness their collaborative strengths across key sectors including the economy, cross-boundary infrastructure, tourism and culture. He said both Hong Kong and Macau are integral parts of the Greater Bay Area and will continue to promote its development. The Hong Kong delegation visited the Guangdong-Macau In-depth Cooperation Zone in Hengqin during the visit. Lee highlighted the strategic significance of the cooperation zone, describing it as a key initiative designed to enrich the practice of One Country, Two Systems, fostering Macau's long-term prosperity, stability and integration into national development plans. The delegation also toured a Chinese medicine centre there to learn about the integration of traditional Chinese medicine and the cultural tourism industry. The group also visited the Guangdong-Macau In-depth Cooperation Zone in Hengqin Planning Exhibition Hall that features more than 600 exhibits on new products and technologies. The Hong Kong delegation included Financial Secretary Paul Chan, Secretary for Constitutional and Mainland Affairs Erick Tsang, Secretary for Health Lo Chung-mau, Secretary for Transport and Logistics Mable Chan and director of the Chief Executive's Office Carol Yip. Lee and the officials returned to Hong Kong later in the day.
