China Builds Gold Network to Strengthen Yuan’s Global Reach

Tue Aug 25 2026

China is expanding a global network of gold vaults and accelerating central bank gold purchases as Beijing seeks to strengthen the yuan’s role in international trade, according to an S&P Global Ratings report.

China launched its first offshore gold delivery vault in Hong Kong last year under an agreement with the Shanghai Gold Exchange (SGE), with Bank of China (Hong Kong) as the designated operator.

The proposed network could extend to Singapore, Kuala Lumpur, Dubai, Riyadh and Moscow, connecting international markets with China’s physical gold market.

China’s official gold holdings have continued to rise. As of the end of July, China’s gold reserves stood at 76.08 million ounces, marking the 21st consecutive month of accumulation.

China also reclassified gold as a “strategic mineral” in 2025, supporting efforts to expand domestic production and strengthen the country’s gold industry.

Chinese mining companies are expanding overseas. Zijin Gold International, a unit of Zijin Mining, acquired profitable mines in Ghana and Kazakhstan, helping its first-half 2026 net profit rise 179% year on year to US$1.45 billion.

However, overseas expansion faces tighter scrutiny. In late July, Zijin Mining terminated a planned takeover of Canada’s Allied Gold Corp and instead acquired a 9.2% minority stake for about US$295 million.

Overall, the expansion of gold vaults, official gold reserves, yuan-denominated gold trading and overseas mining operations points to a coordinated effort by China to strengthen its role in the global gold market and increase the international utility of the yuan.

Source: https://ahmedbinsulayem.substack.com/