China Increases Gold Reserves for Fifth Consecutive Month: Adds 20 Tons, Reserve Value Surpasses $328 Billion

China added nearly 20 tons of gold in July 2026, the largest single-month increase since October 2023. This marks the fifth consecutive month that the People's Bank of China has intensified its gold purchases. Currently, China holds approximately 2,346 tons of gold. According to Reuters data, the value of China's gold reserves reached $328 billion by the end of July 2026.

For an extended period, central banks worldwide have been significantly increasing their gold reserves. In the second quarter of 2026 alone, net central bank gold purchases totaled 288.9 tons, setting a historical high for any second quarter.

However, China is not only pursuing an expansion of its gold reserves but is also actively working to shift more gold trading to Asia. While it is generally believed that most of China's gold reserves are held within the country, recent Reuters reporting indicates that the People's Bank of China is transferring some of its physical gold holdings from London to Hong Kong.

At the beginning of July 2026, the Precious Metals Central Clearing Company (PMCC), a fully government-owned entity in the Hong Kong Special Administrative Region, officially launched. This is a new physical gold settlement system that directly connects with the Shanghai Gold Exchange, enabling same-day settlement.

The online media outlet China Table suggests that Hong Kong could become a major hub for Asian gold trading. Major international banks active in Asia—including HSBC, JPMorgan, UBS Group, and Citigroup—have already joined the PMCC system, while simultaneously maintaining their deep involvement in London's gold market.