China's total gold imports via Hong Kong in March rose 41.9% from February, Hong Kong Census and Statistics Department data showed Monday.

However, China's net gold imports via Hong Kong in March were below its exports for a third consecutive month, the data showed.

WHY IT'S IMPORTANT

China is the world's leading consumer of gold, and its purchasing activities can significantly influence global gold prices.

The Hong Kong data may not provide a complete picture of Chinese purchases, as gold is also imported via Shanghai and Beijing.

BY THE NUMBERS

Net imports via Hong Kong to China for March stood at -4.889 metric tons against -26.398 metric tons imported in February.

The world's top gold consumer's total gold imports via Hong Kong, however, was at 21.071 metric tons in March, up from 14.851 tons in February.

KEY QUOTES

"Over the quarter as a whole, Hong Kong was a net importer from China on the back of weak Chinese demand. But the net import in March was five tonnes against an average for Jan-Feb of 15 tonnes per month, reflecting a gradual improvement in demand on the mainland," said StoneX analyst Rhona O'Connell.

"Anecdotal evidence during April suggests that this month will show net exports into China as demand has picked up smartly and the People's Bank of China is reported to have allocated fresh import quotas to selected international banks a couple of weeks ago."

CONTEXT

Gold, a hedge against global uncertainties and inflation, has risen more than 25% in 2025, driven largely by Trump's tariff plans, expectations of interest rate cuts by the Federal Reserve, geopolitical tensions in the Middle East and Ukraine, strong central bank buying, and increased investments in gold-backed exchange-traded funds.

Elsewhere, gold discounts in India jumped last week to the highest level in nearly nine years as record prices deterred buyers.