China Adds 20 Tonnes to Gold Reserves as Hong Kong Expands Bullion Hub

TLDR:

• China added 19.9 tonnes of gold in July, lifting its reported bullion holdings to about 2,366 tonnes.
• SAFE valued China’s gold reserves at $306.35B in July, rising from $303.72B recorded at the end of June.
• China has added about 60 tonnes of gold in 2026, extending its reported buying streak to 21 straight months.
• Hong Kong plans to expand gold-storage capacity more than tenfold, reaching over 2,000 tonnes by 2030.

China accelerated its bullion accumulation in July, adding nearly 20 metric tonnes as authorities continued expanding Hong Kong’s role in international gold trading and storage. According to official SAFE data, reserves rose to 76.08 million fine troy ounces from 75.44 million ounces in June.

The increase of 640,000 ounces was equivalent to about 19.9 tonnes. Moreover, July marked the largest monthly addition since October 2023, when reserves increased by 740,000 ounces. The latest purchase also extended the central bank’s reported buying streak.

The July increase followed earlier purchases of roughly 15 tonnes in June and 10 tonnes in May. Meanwhile, World Gold Council data showed that China added about 40 tonnes during the first half of 2026.

As a result, combined purchases reached approximately 60 tonnes for the year after including July’s addition. At the same time, the latest increase extended China’s reported accumulation run to 21 consecutive months.

China’s Gold Reserves Climb Above $306 Billion

SAFE valued China’s gold reserves at $306.35 billion at the end of July, up from $303.72 billion one month earlier. Meanwhile, the country’s foreign currency reserves stood near $3.42 trillion. The increase in bullion value also came as gold prices gained 0.84% during July, ending four consecutive months of declines.

Spot gold recently traded above $4,310 per ounce. Consequently, the higher market price, combined with continued central-bank purchases, lifted the overall value of China’s official holdings.

China’s accumulation also reflects a broader increase in central-bank demand. World Gold Council data showed official institutions purchased a net 289 tonnes during the second quarter, bringing first-half demand to 345 tonnes.

Moreover, its 2026 survey showed strong expectations for further accumulation. Among participating reserve managers, 89% expected global central-bank gold holdings to rise over the next year, while 45% expected their own institutions to increase reserves.

Hong Kong Expands Clearing, Futures and Gold Storage

China’s reserve growth is unfolding alongside a major buildout of Hong Kong’s physical trading, clearing, and storage network. Bloomberg reporting indicated that the PBOC had increased inventories held in Hong Kong while shifting some reserves from London. 

However, official Chinese reserve figures have not detailed the size or timing of those reported transfers. At the same time, Hong Kong launched a central gold clearing system in July, revived U.S. dollar-denominated gold futures, and introduced new physical settlement arrangements.

The city also established a “Delivery Connect” mechanism with the Shanghai Gold Exchange, allowing physical settlement between mainland China and Hong Kong. Authorities are also considering yuan-denominated futures, adding another possible trading instrument to the city’s expanding bullion market.

Storage capacity forms another major part of the expansion. The city plans to increase vault capacity more than tenfold to above 2,000 tonnes by 2030.

London Retains a Far Larger Global Bullion Footprint

Despite those developments, London remains substantially larger as an established global bullion center. London vaults held 9,464 tonnes at the end of June, more than four times Hong Kong’s planned 2030 storage capacity.

The market also cleared 16.1 million ounces daily during May, demonstrating the scale the Asian financial center is attempting to approach. The latest figures therefore show two measurable developments occurring simultaneously: rising official bullion holdings and rapid investment in regional trading infrastructure.

Together, those changes place reserve accumulation and market development on parallel tracks as China increases holdings while Hong Kong expands its bullion-market capacity.

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