China buys gold at a record pace, with imports topping 1,000 tonnes in the first eight months of 2026 as investment demand, bank purchases and official reserve buying reshape the country’s bullion market. The Chinese customs data showed that the country spent $158.8 billion on gold imports from January through August, already surpassing the 886 tonnes and $96.5 billion imported during all of 2025.
The figure covers gold entering the broader Chinese economy through commercial banks, investment channels, jewelry supply chains and other buyers. Official central bank purchases were much smaller.
By the end of August, the People’s Bank of China (PBOC) held about 2,387 tonnes of gold after adding 20.2 tonnes during the month, according to the World Gold Council. August marked the 22nd straight month of reported additions.
Why China buys gold at a record pace
Investment demand has been one of the clearest drivers. China Gold Association data showed gold bar and coin consumption rose 28.42% in the first half of 2026 to 339.336 tonnes. Jewelry demand moved in the opposite direction, falling 33.88% to 132.133 tonnes. Chinese gold exchange-traded funds also expanded, with holdings reaching about 293 tonnes by the end of August, the World Gold Council reported.
Imports accelerated as gold prices fell from early-year highs and the yuan strengthened, making overseas bullion cheaper in local currency terms. A domestic price premium also gave banks and traders an incentive to bring metal into China.
A regulatory change added another factor. New rules effective June 1 allowed frequent gold importers to use a reusable licensing system instead of applying for a separate license for each shipment. Bloomberg reported that the change likely encouraged banks to make greater use of import quotas while supplying retail bars and gold accumulation products.
PBOC buying deepens China’s gold shift
The PBOC’s purchases are a separate part of the story. China resumed reported central bank gold buying in November 2024 after a six-month pause. The streak continued through August 2026, with gold accounting for about 9% of official reserves, according to the World Gold Council.
Meanwhile, China’s reported U.S. Treasury holdings fell to $618 billion in July, the lowest level since 2008, U.S. Treasury data show. Analysts cited by the Financial Times described the parallel moves as consistent with reserve diversification. Public data do not show that Treasury sales directly financed China’s record gold imports.
The import surge reflects private investment, bank activity, easier import rules, currency moves, and official buying. It is broader than a central bank purchase and shows gold’s expanding role in China’s financial system.
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