<p>Chinese gold imports surged in the first two months of the year, underpinned by strong demand.</p>
<p>China ranks as the largest gold market in the world.</p>
<p>According to the latest data released by China Customs, the country imported a net 77 tonnes of gold in January. That compares to just 6 tonnes in January 2025.</p>
<p>The import pace picked up speed in February, with China bringing in 96 tonnes of gold, a 63-tonne year-on-year increase.</p>
<p><img src="https://www.moneymetals.com/uploads/content/china-gold-imports-jan-feb-26.jpg" width="700" height="404" class="mx-auto p-3" alt="" /></p>
<p>Continued strong demand was also evident in March as banks, jewelers, and refiners withdrew 134 tonnes of gold from the Shanghai Gold Exchange (SGE). SGE activity reflects wholesale demand.</p>
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<p>SGE gold withdrawals were up 57 percent month-on-month and 12 percent higher than the same period last year.</p>
<p>According to the World Gold Council, the month-on-month gain was primarily seasonal as wholesalers restocked inventory in the wake of the Chinese New Year holiday.</p>
<p>A strong March drove Q1 wholesale demand to 345 tonnes. That was a 3 percent increase over Q1 2025, but still 23 percent below the 10-year average.</p>
<p>Overall, gold demand in China continues to be a tale of two sectors, with strong investment demand offsetting persistent weakness in jewelry sales.</p>
<p>Coin and bar sales have continued the strong upward trend we saw throughout most of last year. <a href="https://www.moneymetals.com/news/2026/01/30/gold-demand-topped-5000-tonnes-for-the-first-time-in-2025-004647">Global coin and bar demand hit a 12-year high in 2025</a>, and more than half of it came from two countries – China and India.</p>
<p>Inflows of gold into Chinese ETFs also reflect strong investor interest. While <a href="https://www.moneymetals.com/news/2026/04/09/etfs-dumped-gold-in-march-except-in-asia-004825">North American funds were shedding gold</a> as the price dipped in the initial phase of the Iran conflict, Chinese funds were still adding metal.</p>
<p>In fact, China-based ETFs have reported an increase in gold holdings for seven straight months. In March, Chinese fund gold inflows totaled 8.4 tonnes.</p>
<p><img src="https://www.moneymetals.com/uploads/content/china-etf-march-26.jpg" width="700" height="401" class="mx-auto p-3" alt="" /></p>
<p>As the World Gold Council explained, the falling gold price did not deter Chinese investors.</p>
<blockquote>
<p>“In March, the CSI300 stock index fell 6 percent and the local currency depreciated by 0.8 percent against the dollar; these factors, combined with safe-haven demand prompted by the U.S.-Israel-Iran war, and continued regional geopolitical tensions, supported local gold ETF buying. We also witnessed some dip buying during the first half of the month.”</p>
</blockquote>
<p>Thanks to a combination of rising prices and gold inflows, assets under management (AUM) by Chinese ETFs rose 26 percent to ¥304 billion ($44 billion) and total gold holdings climbed to 298 tonnes in Q1.</p>
<p>A gold ETF is backed by a trust company that holds metal owned and stored by the trust. In most cases, investing in an ETF does not entitle you to any amount of physical gold. You own a share of the ETF, not gold itself. ETFs are a convenient way for investors to play the gold market, but <a href="https://www.moneymetals.com/news/2024/03/08/paper-gold-vs-real-gold-its-important-to-know-the-difference-003038">owning ETF shares is not the same as holding physical gold</a>.</p>
