China’s entrance into gold ETFs

2013 saw the launch of China’s first gold-backed ETFs, marking a new and important step in the liberalisation of China’s bullion market, which increased from just 12 tonnes in 2004 to 274 tonnes by 2012. The significance of China launching gold ETFs — a country that’s one of the world’s biggest consumers of gold — was not lost on industry experts. They saw an opportunity for the low-cost nature and convenience of ETFs to boost demand for the precious metal in a country that relies on gold for weddings, gift-giving, and as an investment.

Today, there are eleven gold-backed ETFs listed in China, with collective holdings of 68.7 tonnes worth RMB25bn or US$3.9bn (data as of 30 June 2021).

Read more on Reuters, the Financial Times, and Goldhub.