China's Gold Stash Grows as Domestic Investors Rush Back into Bullion

China's central bank has been quietly stockpiling gold in Hong Kong over the past few months, adding to its reserves and supporting the city's push to become a major bullion trading hub.

The People's Bank of China has accumulated gold inventories in Hong Kong, accelerating a trend of shifting some gold reserves back from London toward home.

This move coincides with a rebound in Chinese domestic investor demand for gold, with onshore gold-backed exchange-traded funds (ETFs) recording 14 consecutive days of inflows through Monday, the longest such streak since March.

The ETFs drew in over $1.2 billion during this period, with the single largest day of inflows reaching $370 million.