China's central bank intensified its gold accumulation in mid-2025, while also initiating the transfer of gold reserves from London to Hong Kong as part of a broader repatriation trend among global central banks.

PBOC Gold Purchases Reach Largest Monthly Increase Since 2023

The People's Bank of China (PBOC) reported an official purchase of 640,000 troy ounces of gold in July — a nearly 20-tonne increase and the largest monthly addition since 2023. This followed a 480,000-ounce increase in June, marking 21 consecutive months of official gold accumulation.

Year-to-date, the PBOC has increased its official gold holdings by approximately 60 tonnes. China's officially disclosed reserves now stand at 2,366 tonnes, valued at $306.35 billion. That ranks China sixth globally among officially reported national gold holdings, though the unbroken buying streak signals a deliberate and sustained allocation strategy rather than opportunistic purchases.

Undisclosed Reserves May Far Exceed Official Figures

China is widely believed to hold substantially more gold than it publicly reports. According to research by Jan Nieuwenhuijs, the PBOC has been acquiring significant quantities of gold off the books. Data analyzed by the Money Metals researcher suggests the Chinese central bank currently holds more than 5,000 tonnes of monetary gold stored in Beijing — more than twice the amount officially acknowledged.

Major financial institutions have begun to take note. Goldman Sachs recently flagged China's undisclosed purchases, while analysts at BMO Capital estimated that Chinese gold reserves could surpass those of the United States — which holds approximately 8,133 tonnes, the world's largest officially reported stockpile — within five years.

China Moves Gold from London to Hong Kong

China has started relocating a portion of its gold reserves from London to Hong Kong, aligning with a broader gold repatriation movement among central banks worldwide. London has served for decades as one of the world's principal gold custodian and trading hubs, home to the London Bullion Market Association and vast underground vaults that store metal on behalf of dozens of nations.

Bloomberg reported that anonymous officials said the PBOC "has built up inventories in Hong Kong over the past few months," describing the move as "accelerating a longer-term trend whereby the PBOC has been moving some of its gold reserves back home from London." The officials indicated that the PBOC intends to continue transferring metal from London.

This repatriation appears tied to a wider strategy as China and the broader Asian region seek a larger role in the global gold market. Earlier this month, Hong Kong launched trial operations of a new gold clearing and settlement system, positioning the region to challenge Western dominance in gold trading. Hong Kong officials also plan to expand the territory's gold storage capacity from 200 tonnes to more than 2,000 tonnes over the next three years.

Bloomberg noted that the movement of gold from London into Hong Kong's expanding vaulting facilities lends support to the new clearing system. At the system's launch, PBOC Governor Pan Gongsheng stated that the central bank plans to continue allocating national foreign reserves to Hong Kong.

Hong Kong has invited other nations to participate in the clearing system and to store gold in the administrative region. Cambodia has already accepted the invitation to vault gold there.

Global Gold Repatriation Trend Accelerates

The trend extends well beyond China. Central banks worldwide have been net gold buyers for years, with the World Gold Council reporting record or near-record annual purchases since 2022, but the physical relocation of metal — not just accumulation — marks a newer phase in how sovereign reserve managers are approaching custody. A Financial Times article summarized the development: "Global central banks are removing gold from vaults in London and New York as they become more skittish about storing bullion outside their own borders, according to a new survey."

India has been particularly aggressive in repatriating its gold. In the spring of 2024, the Reserve Bank of India brought 100 tonnes of gold home from vaults in the United Kingdom, followed by an additional 104 tonnes over the subsequent six months.

According to the Economic Times of India, the U.S. weaponization of the dollar is a primary driver of gold repatriation, particularly the sanctions imposed on Russia following its invasion of Ukraine and the freezing of Afghanistan's reserves by Western powers. The FT noted: "Those episodes, involving G7 countries restricting access to sovereign assets, have reshaped how central banks think about custody."

Emerging market central banks and nations with strained relations with the U.S. are not alone in this movement. France completed its own gold repatriation project earlier this year. Metals Focus senior analyst Junlu Liang said the trend reflects a reassessment of gold's role in reserve management, adding: "In some countries, domestic political considerations have further strengthened calls to relocate gold holdings closer to home."

Several other nations have repatriated gold in recent years, including the Netherlands, Australia, Poland, Hungary, and Romania. In Germany, a growing chorus across the political spectrum is calling on officials to bring the country's gold reserves home as well.

The widening repatriation movement underscores the strategic importance central banks now place on holding physical gold free from counterparty risk, as the architecture of global reserve management continues to shift in parallel with geopolitical realignment.