China Leads Asia in Gold Buying Streak, Reserve Diversification

China's central bank has been buying gold for an unprecedented 21 consecutive months. The People's Bank of China (PBoC) added 20 tonnes of gold in July 2026, its largest single monthly purchase since October 2023, extending the buying streak to a record-breaking 21 months.

The total PBoC gold holdings now stand at 2,366 tonnes, representing 8% of China's total foreign exchange reserves. At current gold prices, this stockpile is worth approximately $300 billion, a figure consistent with claims that China's gold reserves have surged past $300 billion in value.

The trend of reserve diversification toward gold is not limited to China. Hong Kong has launched a trial run of its central gold clearing and settlement system, allowing for two-way physical gold transfers between the Shanghai Gold Exchange and Hong Kong markets. South Korea has also resumed buying gold after a 13-year pause, with the Bank of Korea purchasing overseas-listed spot gold ETFs and setting up a framework to buy domestically produced physical gold.