Gold, Bullion İndustry, Dollar, Yuan

Gold, Bullion İndustry

China curbs gold imports as trade war heats up

China curbs gold imports as trade war heats up

14.8.2019

China curbs gold imports as trade war heats up

BEIJING: China has severely restricted imports of gold since May, bullion industry sources with direct knowledge of the matter told Reuters, in a ...

The world's second largest economy has cut shipments by some 300-500 tonnes compared with last year - worth US$15-25 billion at current prices, the sources said, speaking on condition of anonymity because they are not authorized to speak to the media.

The restrictions come as an escalating trade confrontation with the United States has dragged China's pace of growth to the slowest in nearly three decades and pressured the yuan to its lowest since 2008.

Chinese customs figures show it imported 575 tonnes of gold in the first half of the year, down from 883 tonnes in the same period of 2018.

In May, China imported 71 tonnes, down from 157 tonnes in May 2018. In June, the last month for which data is available, the decline was even sharper, with 57 tonnes shipped compared with 199 tonnes in June last year.

"There are virtually no import quotas now issued in China," one source said. In June and July"next to nothing" was imported by banks, they said.

Imports have not fallen to zero because some banks may still be receiving some quotas and other import channels, such as refineries receiving semi-pure mined gold, remain open, four of the sources said.

It has also restricted gold import quotas before - most recently in 2016 after the yuan weakened sharply, bullion bankers said.

The yuan has sunk more than 10 per cent against the dollar since early last year and the central bank this month allowed it to slide below the key threshold of seven-per-dollar for the first time in more than a decade.

But restricting gold imports is an easy way to curtail outflows without affecting people's lives, bullion bankers said.

Slowing global economic growth is pushing more institutional investors, particularly in Europe and North America, toward gold, traditionally seen as a safe place to invest, while central banks are buying at the fastest pace in half a century.

Read more: CNA

Huawei hires trade lobbyists as sales slow in US-China fightWASHINGTON (BLOOMBERG) - Huawei Technologies Co. hired the law firm Sidley Austin LLP to lobby on trade as the US pressures allies to join it in blacklisting the Chinese telecom giant and the company finds itself increasingly mired in President Donald Trump's trade war with Beijing.. Read more at straitstimes.com.

Valuetronics Q1 profit hit by softer demand amid US-China trade warELECTRONICS manufacturer Valuetronics Holdings reported a 3.1 per cent drop in net profit to HK$48.1 million (S$8.5 million) for its first quarter ended June 30, from HK$49.7 million for the year-ago period. Read more at The Business Times.

Pew survey: 60% in US hold dim view of China amid trade warRising tensions over trade have dimmed Americans' opinions of China. A new Pew Research Center poll finds that 60% say they have an unfavorable view of China — up from 47% last year to the highest proportion since Pew started asking the question 14 years ago. The survey results being released Tuesday

US senator warns China on Hong Kong trade status if it cracks down on protests[WASHINGTON] A prominent US senator warned China on Tuesday that Hong Kong could lose the special trade status it has enjoyed under US law if Beijing intervenes directly to crack down on pro-democracy protests in the territory. Read more at The Business Times.

China sticking to Sept US trade talks after tariff delay[BEIJING] Chinese officials are sticking to their plan to visit Washington in September for face-to-face trade meetings, people familiar with the matter said, signalling that talks remain on track for now despite an abrupt escalation in tariff threats this month. Read more at The Business Times.

China government think tank presses for 2025 CO2 capAn influential Chinese think tank is calling on the government to set absolute caps on climate-warming greenhouse gas to ensure the country is on course for emissions to peak by the end of the next decade. China, the world's biggest producer of greenhouse gas, has pledged to bring its total emissions

Write Comment

Thank you for your comment.
Please try again later.

Latest News

News

15 August 2019, Thursday News

Previous news

CDW Holding Q2 loss widens to US$818,000 despite revenue rise

Next news

Suspects in Slovak journalist's killing face more charges