Hong Kong gold imports fall 18% in July as mainland giants rush to build vaults

Gold flows into Hong Kong eased to about 107 tonnes in July despite mainland corporate buyers pouring capital into new bullion vaults, as they bet on the city’s strategic ambition to establish itself as Asia’s premier hub for the precious metal.The city’s non-monetary gold imports fell about 18 per cent from June, a month that registered a decade-long high as banks built up inventory ahead of the trial launch of the city’s gold clearing and settlement system that opened on July 7.The value of shipments fell to HK$114.71 billion (US$14.63 billion) from HK$142.02 billion, according to data released by Hong Kong’s Census and Statistics Department.“Import demand related to stocking has started to stabilise since the gold inventory build-up was largely completed in June,” said Ming Lam, councillor of the Greater China Division of CPA Australia. “Investors and traders may rebalance their overall investment portfolios, including their positions in gold.”Even with the monthly correction, appetite remained strong compared with February, when imports stood at just 72.16 tonnes. The robust demand comes as banks and logistics companies bet on Hong Kong’s gold vaults, moving to secure physical storage capacity as shipments for the precious metal expand.SF Express, China’s largest courier, is setting up a gold vault in Tsing Yi this year, according to a government registry provided to the China-morning-post" class="entity-link entity-organization" data-entity-id="12558" data-entity-type="organization">South China Morning Post. China" class="entity-link entity-organization" data-entity-id="194420" data-entity-type="organization">Industrial and Commercial Bank of China, the mainland’s largest state-owned lender by total assets, is also developing a precious-metals storage facility.