Chinese gold ETFs glow as investors chase metal's historic rise amid Trump turmoil
Advertisement
The 13 mainland-domiciled gold ETFs have attracted new subscriptions of at least 7.9 billion units so far this year, according to financial data provider Wind Information. As of April 11, fresh inflows and the rising price of gold added 70.4 billion yuan (US$9.6 billion) to the funds' assets under management, an 80 per cent year-on-year rise, according to data compiled by Guosen Securities.
Gold's 33 per cent gain this year has beaten other key asset classes, with global investors loading up on the metal to hedge against rising geopolitical tensions. The pattern has strengthened since the US rattled global financial markets and upended global trade with its so-called reciprocal tariffs early this month. Goldman Sachs expects gold to hit US$4,000 an ounce at some point this year, implying a 15 per cent rise from the current level.
'Gold is shining on the backdrop of reshaping the global order,' said Liu Shiyao, an analyst at Zijin Tianfeng Futures. 'The more than 60 per cent gain in gold prices over the past two years shows that it has come to take the place of US Treasuries and the dollar as the haven for investors.'
Spot gold prices rose 1.7 per cent to US$3,480.54 an ounce on Tuesday after topping US$3,400 for the first time in overnight trading. Investors snapped up the metal after US President Donald Trump's comments on the Federal Reserve's monetary policy undermined confidence in the independence of the world's biggest central bank and lent more weight to the narrative of steering clear of US assets.
Advertisement
Money managers had 126.7 billion yuan of assets under management in gold ETFs as of April 11, according to Guosen Securities. The biggest is a 64.2 billion yuan fund managed by Shanghai-based Hua An Fund Management. Bosera Asset Management's 28.9 billion-yuan gold ETF was second, followed by a 26.6 billion yuan fund by E Fund Management. All the funds track the benchmark spot gold contract trading on the Shanghai Futures Exchange.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
an hour ago
- South China Morning Post
Trump reaches Vietnam trade deal with 20% import tariff
US President Donald Trump said he had reached a trade deal with Vietnam, following weeks of intense diplomacy between the two nations and ahead of a deadline next week that would have seen higher tariffs imposed on the country's imports. 'I just made a Trade Deal with Vietnam . Details to follow,' Trump said in a Truth Social post on Wednesday. The deal with Vietnam would be just the third announced following agreements with the UK and China as trading partners race to cut agreements with the US ahead of a July 9 deadline. Trump had imposed a 46 per cent duty on Vietnam as part of his initial roll-out of so-called reciprocal tariffs in early April, then pared it back to 10 per cent to allow time for negotiations. The southeast Asian nation has seen its sales to US markets surge in recent years, partly because manufacturers shifted production there from China. It's a major supplier of textiles and sportswear, hosting factories for companies such as Nike, Gap and Lululemon. Vietnam was the sixth-biggest supplier of US imports last year, sending goods worth almost US$137 billion, according to Census Bureau data. Employees work at a shoe factory for export in Hanoi, Vietnam. Photo: Reuters The deal with Vietnam was struck after weeks of discussions during which the US pressured the country to get tougher on trade fraud, ensure stricter enforcement against the transshipment of Chinese products, and also pushed for the removal of non-tariff barriers.
South China Morning Post
2 hours ago
- South China Morning Post
Chinese sellers bracing as Amazon Prime Day sale could put weight of US tariffs on display
Ahead of Amazon's annual Prime Day sales event, Chinese sellers are already walking a tightrope as they try to strike a balance between staying competitive and adjusting to Washington's tariffs. Advertisement Gloria Gu, an Amazon seller based in Zhejiang province, said her outlook for this year's summer event – extended this year to a record four days, July 8-11 – was 'not optimistic'. Her company mainly sells household consumables – low-margin products that are highly price-sensitive. 'Depending on the item, prices have gone up by 10 to 20 per cent,' she said, while the minimum discount requirement for Prime Day deals on Amazon's platform is 20 per cent, the same as in previous years. 'We pass part of that on to consumers, but we also eat up some ourselves and ask our suppliers to share the burden,' she explained. But raising prices too much is not an option in Amazon's hyper-competitive environment, she added. 'The market is still extremely cutthroat; we really can't hike prices too much,' she said, noting that the platform's own fees were also climbing. Advertisement With a US tariff deadline approaching on July 9 – marking the end to President Donald Trump's 90-day pause on his 'reciprocal tariffs' for most countries, excluding China – and with Amazon kicking off one of its biggest sales events of the year just a day earlier, many price-sensitive American consumers are waiting to see if they will be the ones hit hardest, as inflation and overall cost-of-living concerns are front of mind.
RTHK
7 hours ago
- RTHK
Property plays help Hang Seng Index end higher
Property plays help Hang Seng Index end higher The Hang Seng Index has ended the day up 149 points, or 0.62 percent, at 24,221. File photo: RTHK Mainland Chinese stocks were flat on Wednesday as investors weighed persistent global trade tensions and refrained from placing massive bets, while Hong Kong shares closed higher. The Hang Seng Index ended the day at 24,221, up 149 points or 0.62 percent, while the Hang Seng China Enterprises Index, which tracks Chinese H-shares listed in the city, gained 0.5 percent. The local property sub-index added two percent, helping to boost the markets. Cash-strapped property giant New World Development surged nearly 10 percent after closing a HK$88.2 billion refinancing deal. On the mainland, the benchmark Shanghai Composite Index closed down 0.09 percent at 3,454 while the Shenzhen Component Index closed 0.61 percent lower at 10,412. Their combined turnover was 1.38 trillion yuan, down from 1.47 trillion yuan on the previous trading day. Shares in the papermaking and cement industries led the gains, while those in aircraft manufacturing and electronic information sectors suffered the most. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 1.13 percent to close at 2,123. Defensive sectors helped lift the markets onshore, with the banking sector sub-index up 0.8 percent while liquor distiller sector advanced 0.6 percent. Tech shares weighed on the markets, with the semiconductor sector and AI-related shares losing around two percent each. Caution prevailed across the region as investors await developments in trade talks, after US President Donald Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States. (Reuters/Xinhua)
