China's Gold Imports Soar to Record $158 Billion Amid Yuan Strength

China's gold imports have skyrocketed to a record $158.8 billion in the first eight months of 2026, outpacing last year's total of $96.5 billion by more than 65%. The country imported over 1,000 tons of gold during this period, with Goldman Sachs analysts estimating that the People's Bank of China (PBOC) bought 35 tons in July alone.

This surge in demand has left many wondering why China is hoarding so much bullion. According to Lisa Liu, managing director at Gold Mountains Asset Management (Zijin Mining Group), both central banks and private investors are diversifying their reserves and savings towards an asset with no counterparty risk as part of a broader long-term wealth preservation strategy.

The yuan's strength since the beginning of 2026 has also created favorable conditions for gold imports, enabling regulators to grant more generous approval quotas. As a result, Chinese gold ETFs have added roughly 44 tons through August, an 18% increase from the start of the year.