Gold-focused exchange-traded funds (ETFs) in China are seeing rapid expansion as investors look for safer options amid trade-related uncertainty and volatile markets.
Assets under management in Chinese gold ETFs have climbed by 9.6 billion yuan, reaching a total of 126.7 billion yuan. The largest single fund, run by Hua An Fund Management, holds 64.2 billion yuan of that total.
The price of gold has recently surpassed $3,400 per ounce and has gained more than 60% over the past two years. That strong performance has reinforced gold’s role as an alternative safe-haven asset alongside, and sometimes in place of, traditional stores of value such as US Treasury bonds and the US dollar.
At the same time, the US dollar index has been approaching its lowest level since March 2022, supporting demand for gold. Central banks around the world — including China’s — have also been steadily increasing their official gold reserves, marking a fifth consecutive month of purchases and adding to the overall upward pressure on prices and investor interest.
These combined forces — rising ETF inflows, sustained central bank buying and a softer dollar — are helping to cement gold’s appeal for Chinese investors seeking to diversify portfolios and reduce exposure to currency and geopolitical risks. As gold ETFs gain scale, they offer a more accessible and liquid route for both retail and institutional investors to gain exposure to the metal without holding physical bullion.
Market observers note that continued geopolitical tensions and monetary policy shifts could maintain demand for gold-related investment products. For now, the expansion of China’s gold ETF sector reflects a broader trend: investors reallocating capital toward assets perceived as reliable stores of value during periods of economic and financial uncertainty.