In 2015, investors have withdrawn a record amount of gold from the Shanghai Gold Exchange, the world's biggest spot bullion market, which contributed to signs that demand in China is regaining ground after a stock market rout and a shock devaluation of the yuan.
According to data from the exchange website, withdrawals surged 37
percent to 1,891.9 metric tons through Sept. 18 from 1,380.9 tons a year
earlier.
Spokesman for the bourse Liu Liang said that trading rose 150 percent in the first eight months.
The world's second largest economy has been increasing its official gold reserves. On Wednesday they reported a further 1 percent rise to about 1,694 tons - the world’s fifth biggest hoard.
Global prices for gold have dropped about 40 percent from a record in 2011 to the lowest
levels in more than five years, driving demand from
China to India, the world’s top consumers. According to World Gold Council estimates, China and India are expected to consume 900 tons to 1,000 tons each in
2015.
The Swiss Federal Customs Administration reported that Swiss exports of gold to mainland China were 17 tons in August, while shipments to Hong Kong more than doubled to 36.2 tons from the previous month.
Some economists were concerned over the risk of double-counting, as the bourse doesn't reveal other data, for instance, "we don’t know the
tonnage delivered into its vaults," said Jiang Shu, chief analyst at
Shandong Gold Financial Holdings Capital Management Co.
“Gold for leasing or other transactions might be counted as a withdrawal more than once.”