China's central bank increases its gold reserves in Hong Kong to boost the development of the Hong Kong gold trading center.

According to reports citing insider sources, the People's Bank of China has recently increased its gold holdings in Hong Kong, a move seen as a significant step to support Hong Kong's development as a major gold trading center. Informed sources indicated that the central bank has been increasing its gold reserves in Hong Kong over the past few months and is in the process of transferring some gold from London back to the country, with the latest action set to accelerate this long-term trend. They expect the trend of relocating gold reserves from London to Hong Kong to continue. The People's Bank and the State Administration of Foreign Exchange did not respond to inquiries in a timely manner, while a spokesperson for Hong Kong's Financial Services and the Treasury Bureau declined to comment. Globally, many central banks choose to store a portion of their gold reserves in London, as it is a dominant market for gold, allowing countries to actively manage their reserves by borrowing gold from commercial banks, with a substantial amount of gold in reserves also serving as an important source of liquidity. However, in recent years, several central banks, including those of India and Serbia, have repatriated portions of their overseas gold for security or political reasons. The People's Bank of China is one of the world's largest official gold buyers and has increased its gold holdings for the 20th consecutive month, with the largest increase since October 2023.