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China’s physical gold investment market has come a long way since its liberalisation in 2004.  Primarily driven by the nation’s economic expansion, in 2013 it became the largest gold bar and coin market in the world and it hasn’t looked back since. Chinese commercial banks have played a vital role in this development; their widespread network allows country-wide accessibility and their well-established reputation engenders trust. 

Figure 1: Typical retail gold businesses at Chinese commercial banks

Figure 1: Typical retail gold businesses at Chinese commercial banks

Figure 1: Typical retail gold businesses at Chinese commercial banks

 

But physical gold sales – the core gold business at Chinese commercial banks – have experienced continuous decline since 2015, despite the growth seen in other channels until recently.

 

Chinese commercial banks' physical gold sales have weakened over the past few years

Chinese commercial banks' physical gold sales have weakened over the past few years

Sources: Metals Focus, World Gold Council; Disclaimer

 

Combined with our recently published Retail Insights: China Investment, this report explores:

  • The role of commercial banks in developing China’s gold market 
  • These banks’ main retail gold business lines
  • The downward trend in physical gold sales at these banks and the possible drivers
  • Insights for Chinese retail gold investors.
     

Download the full report

 

1In 2004, China Banking Regulatory Commission and the People’s Bank of China approved retail gold businesses of major state-owned commercial banks, marking the liberalisation of China’s retail gold investment market.

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