China’s top ETF now gold: demand signals and price risk notes for miners

Tue July 07 2026

30 Second Briefing

Central banks bought a net 41 tonnes of gold in May 2026, led by Poland’s 18 tonnes and China’s 10 tonnes, with China now holding 2,331 tonnes and 89% of surveyed reserve managers expecting global official gold holdings to rise further. In China’s domestic market, the Huaan Yifu Gold ETF has become the country’s largest ETF at about 90 billion yuan, overtaking the Huatai-PineBridge CSI 300 equity fund on 83 billion amid weak equities and constrained capital outflows. In London, Citi has joined HSBC, ICBC Standard Bank, JPMorgan and UBS as the fifth clearing member of London Precious Metals Clearing Limited, gaining Loco London settlement access to the roughly $160‑billion‑a‑day OTC bullion market.

Technical Brief

• Poland’s 64 tonnes of purchases in 2026 lift its reserves to 614 tonnes, targeting 700 tonnes.
• Uzbekistan’s 33 tonnes year‑to‑date take gold to 87% of its total official reserves.
• Singapore re‑entered the market with 4 tonnes in May, its first net buying since September 2025.
• Turkey and Russia jointly sold 9 tonnes in May, the only net official sector sellers that month.
• A record 45% of surveyed reserve managers expect their own institution’s gold holdings to increase.
• Huaan Yifu Gold ETF’s ~90 billion yuan AUM now exceeds the CSI 300 ETF’s 83 billion yuan.
• Citi’s admission to LPMCL gives it Loco London settlement for gold, silver, platinum and palladium.
• LPMCL members now intermediate part of an OTC bullion market trading about $160 billion in notional value daily.

Our Take

The World Gold Council’s ninth Central Bank Gold Reserves Survey showing 89% of central bankers expect global gold reserves to rise, together with April’s return to net central-bank buying in our 5 June coverage, signals a policy-driven demand floor that mine developers can lean on when stress-testing project economics at elevated prices.

Source: https://www.geomechanics.io/