Chinese investors have been allegedly hawking their gold, and are now reportedly shifting to local equity.
Bloomberg data shows that China’s major gold-backed ETFs have seen a combined net outflow of almost $450 million (3.2 billion yuan) this month.
Steve Zhou is an analyst with Huaan Fund Management Co. He told Bloomberg that Chinese investors in the local market are cashing out on gold to chase gains in local stocks.
The CSI 300 Index has gained nearly 5.5% over the last month. It aims to mimic the performance of top 300 shares traded at the Shanghai Stock Exchange as well as the Shenzhen Stock Exchange.
However, it is also reported that the Chinese government secretly bought much more gold in comparison to what was revealed by public figures.
MarketWatch quotes Joseph Cavatoni as a market strategist from the World Gold Council. There is debate about whether or not the reported purchase activity of the People’s Bank of China (PBOC), represents the full extent of its activities.
According to Jan Nieuwenhuijs of Money Metals’, the Chinese central banks gold reserves are more than twice what they officially report.
Nieuwenhuijs says the PBOC will have 5,065 metric tonnes of gold at its disposal by the year 2024. This is a far cry from the 2,280 metric tonnage it reported.
According to the latest World Gold Council data, the Chinese government has 2,296 tonnes of gold.
Please follow us on X.
Subscribe for email alerts to avoid missing a beat
___________________
___________________
Sources of Images include Pixabay Creative Commons & Midjourney
This report, Chinese investors sell massive amounts of gold and pivot into this asset class as the price of bullion stagnates appeared first on ICD.
