China Commercial Bank holdings.

JulieW

JulieW

Well-Known Member
Silver Stacker
Chinese-Banks-Precious-Metals-holdings-table-2015-inc-gold-651x403.png

Source: https://www.bullionstar.com/blogs/k...ls-on-chinese-commercial-bank-balance-sheets/

What Are These Huge Tonnages In "Precious Metals" On Chinese Commercial Bank Balance Sheets?
There has been much conjecture since 2014 about the increasing numbers in the "precious metals" category on the balance sheets of listed Chinese commercial banks. By the end of 2015 China's largest banks were holding RMB 598 billion in precious metals.

Some analysts think that the precious metals on Chinese commercial bank balance sheets are gold reserves purchased on behalf of the Chinese central bank, while others surmise that Chinese banks buy gold at the Shanghai Gold Exchange (SGE) and then lend it out so the precious metals on the balance sheets solely represent leased gold. In latter analysis it's then assumed the leasing inflates the amount of gold withdrawn from SGE designated vaults. Most certainly there is leased gold on Chinese banks' balance sheets, but this can hardly influence SGE withdrawals, as I have previously explained. Read this and this article for more information.

What do we know beyond the gossip about the precious metals holdings on Chinese commercial bank balance sheets?

From studying the annual reports of the respective banks and additional documentation we know the precious metals can be at least the following things (if I find more clues this post will be updated):

Gold savings that belong to the banks' customers
Gold inventory for the banks' retail gold business
Gold leasing business
Gold held for hedging purposes
Gold held outside China
Click to expand...
 
I think the significance is the addition to official reserves that were announced a while back.

The article points out the difficulty of determining if they are physical or paper, but I'd tend toward physical - it's a Chinese tradition.

And to answer your question, probably not a large amount relative to their economy but probably a large amount relative to those balance sheets.
 
JulieW said:
I think the significance is the addition to official reserves that were announced a while back.

The article points out the difficulty of determining if they are physical or paper, but I'd tend toward physical - it's a Chinese tradition.

And to answer your question, probably not a large amount relative to their economy but probably a large amount relative to those balance sheets.
Click to expand...


Thanks just came across this...

BOC sell physical gold
http://www.bochk.com/en/investment/metal/trade.html

BOC also have paper trading account

www.bochk.com/dam/document/retail/pdf/pmkfse.pdf

Some other searching it seems there are just as many Chinese pumpers who would put Maloney to shame lol.

And as you point out as with many Asian cultures, Chinese citizens with cash seems to be holding a lot gold, and as they get richer they by more.
 
Lol they have over 2000 branches that stock and sell gold.

If they held 10 ounce each that is 20,000 ounces 600kg. Put I presume each branch will hold more tha 10ounces
 
@JulieW,

I guess Jim Rickard is correct, China is accumulating Gold, so that it secures it economic position during the downturn.
 
I wonder why they hold gold, and not Australian real estate. I would have thought the latter to be more profitable?
 
willrocks said:
I wonder why they hold gold, and not Australian real estate. I would have thought the latter to be more profitable?
Click to expand...


China wants to back it's currency with gold. I do not know if those banks listed there are owned by the Chinese government.
 
Old Codger said:
My bet is at least 10,000 Tonnes!

Annual production is 400 tonnes and ALL retained!

OC
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Wow, if that's The case then gold price can be skyrocketing due to China buying demands.
 
AFAIK, China buys all gold (and gold miners) they can get their hands on.

Also that all gold that finds its way into China, never comes out again, probably forever.

OC
 
It seems Jim Rickard is right, he observed that Chinese Govt. is buying and accumulating sneakily to bolster its position with USA, Russia and Germany.
 
Old Codger said:
AFAIK, China buys all gold (and gold miners) they can get their hands on.

Also that all gold that finds its way into China, never comes out again, probably forever.

OC
Click to expand...

China is the biggest sellers of gold jewllery, and the largest exporters of gold gold jewellery.

It's all hyperbole.

Australians are the largest single owners of residential homes in New York too, did know that?
 
Ipv6Ready said:
Old Codger said:
AFAIK, China buys all gold (and gold miners) they can get their hands on.

Also that all gold that finds its way into China, never comes out again, probably forever.

OC
Click to expand...

China is the biggest sellers of gold jewllery, and the largest exporters of gold gold jewellery.

It's all hyperbole.

Australians are the largest single owners of residential homes in New York too, did know that?
Click to expand...

Thanks for the clarification IPv6 mate :-)
 
http://www.afr.com/real-estate/how-australians-cashed-in-on-brooklyns-brownstones-20150903-gjetwq

There is an underlying dislike of Australian in Brooklyn and such as we have bought cheap during the GFC

Chinese jewellery private demand and export. Plus a good insight why Chinese jewellery demand is one of few reason that supports gold prices into the future. Unlike any other global economic hiccups, where gold was a good indicator of world economy, I think when China goes into recession gold will go down, as the biggest buy of gold will disappear until they come out of recession.


https://www.gold.org/download/file/3290/Chinas-gold-market-progress-and-prospects-EN.pdf
 
There is a Aussie fund specialist that owns 1100 homes or so last time I looked , but it easy to do privately. great returns.
 
So what would happens to the Gold price when the Chinese economy enter into recession or no longer in the accumulating Gold phase anymore ?
 
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