China considers new import and export regime for gold which limits PBOC oversight

The proposed new gold regime aims “to streamline administration, facilitate trade, and improve the management of gold carried across the border by individuals,” the Xinhua report stated.

“The People's Bank of China (PBOC) said the draft amendments were jointly formulated with the General Administration of Customs to update the existing regulatory framework in line with evolving economic conditions, legal requirements and policy adjustments,” it said.

The new draft rules eliminate the current provision requiring the PBOC and customs authorities to “jointly formulate rules for individuals carrying or mailing gold and gold products across the border,” the report said.

The new regulations appear to curtail the central bank’s regulatory activity in this area of the gold trade, as the draft states that “such cross-border movements will remain subject to customs supervision,” but makes no mention of continued PBOC involvement.

“The revisions also seek to improve convenience for businesses and the public by formalizing measures that have proven effective in practice,” the report said. “In addition, the draft would strengthen ex-ante supervision by clarifying the scope of customs oversight, enhancing supervision of foreign trade companies acting as agents, and improving the penalty framework for violations, according to the central bank.”

China’s gold imports reached their highest monthly level in over two years in May, with the world’s number-one gold market showing a strong appetite for bullion as prices remained 25% below their early 2026 highs.

China imported approximately 163 tonnes of gold last month, the largest monthly total since March of 2024, according to the latest customs data released over the weekend. Bullion import volumes year-to-date totaled around 692 tonnes through May, a 76% increase from the same period in 2025.

Song Jiangzhen, a researcher at the Guangzhou Southern Gold Market Academy, told Bloomberg that Chinese demand for gold bars, along with gold linked to incremental bullion accumulation plans for consumers, were among the main drivers of the recent surge in imports.

May’s outsized import numbers outdid April’s standout performance, driven by the domestic price premium during the month.

“Net gold imports into China totaled 157t in April, according to the most recent data from China Customs, rising 10% m/m and 40% higher y/y and making this the strongest month since March 2024,” noted Ray Jia, research head for China at the World Gold Council (WGC) in a recent report. “The positive local gold price spread remained a key factor in encouraging imports.”

Looking ahead, Jia said that seasonality “suggests stability in the gold jewellery sector as the industry replenishes following weak buying in previous months.”

“The lower gold price may help boost these re-stocking activities, although jewellers may sit on the sidelines if the price weakness accelerates,” he added. “On the investment side, a cooling gold price momentum could further limit bullion buying.”

But earlier in June, multiple metrics indicated that China’s gold market was showing definite signs of cooling.

“Amid heightened market uncertainty, gold ETFs have seen an overall reduction in assets under management, with several funds experiencing significant net outflows,” noted a report from Gelonghui Finance. “As of June 3, 14 gold ETFs recorded combined net outflows exceeding RMB 10 billion [$1.48 billion] over the past month.”

“The previously widely accepted investment view of 'buying on dips amid falling gold prices' has started to face divergence under current volatile market conditions,” they added.

Chinese gold equities listed in Hong Kong also declined sharply in a move characterized as ‘unusual.’

“Hong Kong-listed gold stocks broadly declined, with China National Gold International Resources and Jihai Gold down 3.6%, Zijin Mining falling 3.5%, Shandong Gold and Zhaojin Mining dropping nearly 3%, Zijin Gold International declining 2.4%, and Chifeng Gold, Lingbao Gold, China Silver Group, Zhufeng Gold, and Tongguan Gold also following lower,” the report noted.

China’s physical gold market has also cooled substantially from the white-hot demand seen at the start of the year when international and domestic gold prices were setting new all-time records on a near-daily basis.

The latest numbers from the Shanghai Gold Exchange (SGE) showed that gold withdrawals in May totaled only 63.5 tonnes – the lowest level since February of 2020 during the first wave of the COVID-19 outbreak, and around half of what they were in March of this year.