China spent a record $158.8bn importing over 1,000 tonnes of gold in the first eight months of 2026, up from $96.5bn for all of 2025. The surge comes as the central bank and local investors pour cash into bullion amid rising geopolitical tensions abroad and poor returns on local assets. China is also the world's biggest producer of bullion, with 384 tonnes last year.

Both the central bank and private investors are diversifying their reserves and savings towards an asset with no counterparty risk, as part of a broader long-term wealth preservation strategy, said Lisa Liu, managing director at Gold Mountains Asset Management, part of Zijin Mining Group. Domestic investment options in China are more limited since the property market collapsed in 2021, with the CSI 300 index down 1.8 per cent for the year and government bond yields close to record lows. Gold is becoming an increasingly important diversifier for global investors as government bonds no longer move inversely to stock markets.