Hong Kong gold exports to China reach record high

Exports more than double, surprising analysts.

Mainland buyers purchased 223,519, including scrap, in March compared to 97,106 kilograms in February, according to the Hong Kong government. The purchases in March were more than three times higher than the 62,913 kilograms year-on-year.

Net imports by the mainland, after deducting flows from China into Hong Kong, were 130,038 kilograms compared to 60,947 kilograms a month earlier.

The slump led to a surge in demand for jewelry, coins and bars from India and the U.S to China. China’s gold usage rose 26% in the first quarter as prices fell.

Analysts said this development was quite out of expectation as all these imports were done before the market slump in April. Gold plunged into a bear market in April, with prices plummeting 14% in the two days through April 15 in the worst drop in three decades