China's Gold ETF Hits Historic Milestone with 44 Billion Yuan January Inflows

China’s appetite for gold investments reached a turning point in January, with the nation’s gold ETF market recording an unprecedented start to the year. According to the World Gold Council’s latest “China Gold Market Monthly Review,” the surge in fund inflows demonstrates robust confidence in precious metals across multiple investor segments.

ETF Capital Influx Signals Growing China Investor Confidence

The standout performance came from China’s ETF market, where inflows totaled 44 billion yuan—equivalent to approximately $6.2 billion or 38 tons of physical gold. This achievement not only set a new record for January but also pushed both the total assets under management and total holdings to all-time highs. The scale of capital movement underscores how actively China’s investment community is repositioning toward gold as economic and geopolitical uncertainties persist.

Physical Gold Demand Sustains Strength Across Multiple Channels

Beyond the ETF surge, underlying physical gold demand in China remained particularly buoyant. The Shanghai Gold Exchange reported gold withdrawals of 126 tons in January—up 1 ton year-on-year and 11 tons month-on-month. This expansion was driven by a combination of factors: retail jewelry businesses accelerated their pre-Spring Festival restocking, while gold bar sales demonstrated sustained consumer interest. The coordinated strength across these demand channels reinforced the ETF’s record performance.

Central Bank’s Reserve Expansion Reflects Long-Term Strategic Positioning

Adding another layer of significance, China’s central bank made a strategic move by increasing its gold reserves. In 2026, the People’s Bank of China expanded holdings by 1.2 tons, bringing total reserves to 2,308 tons, representing 9.6% of the nation’s total foreign exchange reserves. This deliberate accumulation complements the retail and institutional demand visible in the China market, suggesting coordinated confidence in gold’s role as a strategic asset.

The convergence of record ETF inflows, sustained physical demand, and central bank accumulation paints a picture of China’s evolving relationship with gold—one where the precious metal is increasingly viewed as a cornerstone of diversified portfolios.