China accelerated its bullion accumulation in July, adding nearly 20 metric tonnes of gold as authorities continued expanding Hong Kong's role in international gold trading and storage. According to official data from the State Administration of Foreign Exchange (SAFE), China's gold reserves rose to 76.08 million fine troy ounces, up from 75.44 million ounces reported at the end of June.

The increase of 640,000 ounces was equivalent to approximately 19.9 tonnes. July marked the largest monthly addition since October 2023, when reserves increased by 740,000 ounces.

BREAKING: China's central bank officially added +20 tonnes of gold in July, its largest monthly purchase since October 2023.

This follows +15 tonnes and +10 tonnes acquired in June and May, respectively, and marks their 21st consecutive monthly increase in gold reserves.… pic.twitter.com/aVUnJpIz2U

— The Kobeissi Letter (@KobeissiLetter) August 8, 2026

The July purchase followed earlier acquisitions of roughly 15 tonnes in June and 10 tonnes in May. World Gold Council data showed that China added approximately 40 tonnes during the first half of 2026. Combined purchases reached about 60 tonnes for the year when including July's addition, extending China's reported accumulation run to 21 consecutive months. Gold accounts for less than one-tenth of China's total reported reserves by value — roughly $306 billion against $3.42 trillion in foreign currency holdings — a share that remains well below that of the United States and Germany, where gold represents the majority of official reserves.

China's Gold Reserves Climb Above $306 Billion

SAFE valued China's gold reserves at $306.35 billion at the end of July, up from $303.72 billion one month earlier. The country's foreign currency reserves stood near $3.42 trillion. The increase in bullion value coincided with gold prices gaining 0.84% during July, ending four consecutive months of declines.

Spot gold recently traded above $4,310 per ounce. The higher market price, combined with continued central-bank purchases, lifted the overall value of China's official holdings.

China's accumulation also reflects a broader trend of rising central-bank demand. World Gold Council data showed that official institutions purchased a net 289 tonnes during the second quarter, bringing first-half demand to 345 tonnes. Net central-bank gold purchases have been positive for more than a decade according to World Gold Council records, with emerging-market institutions representing the largest group of net buyers in recent years.

The World Gold Council's 2026 survey showed strong expectations for further accumulation. Among participating reserve managers, 89% expected global central-bank gold holdings to rise over the next year, while 45% expected their own institutions to increase reserves.

Hong Kong Expands Clearing, Futures, and Gold Storage

China's reserve growth is unfolding alongside a major buildout of Hong Kong's physical trading, clearing, and storage network. Bloomberg reporting indicated that the People's Bank of China (PBOC) had increased inventories held in Hong Kong while shifting some reserves from London. However, official Chinese reserve figures have not detailed the size or timing of those reported transfers. The reported shifts come amid a broader pattern in which several central banks have moved bullion to domestic storage in recent years.

In July, Hong Kong launched a central gold clearing system, revived U.S. dollar-denominated gold futures, and introduced new physical settlement arrangements. The city also established a "Delivery Connect" mechanism with the Shanghai Gold Exchange, enabling physical settlement between mainland China and Hong Kong. Authorities are additionally considering yuan-denominated futures, which would add another trading instrument to the city's expanding bullion market.

Storage capacity forms another major component of the expansion. Hong Kong plans to increase vault capacity more than tenfold, targeting above 2,000 tonnes by 2030.

London Retains a Far Larger Global Bullion Footprint

Despite these developments, London remains substantially larger as an established global bullion center. London vaults held 9,464 tonnes at the end of June, more than four times Hong Kong's planned 2030 storage capacity. The London market also cleared 16.1 million ounces daily during May, illustrating the scale that the Asian financial center is working to approach.

The latest figures highlight two measurable developments occurring simultaneously: rising official bullion holdings and rapid investment in regional trading infrastructure. Together, these changes place reserve accumulation and market development on parallel tracks as China increases its gold holdings while Hong Kong expands its bullion-market capacity.