China ranks first in world for gold processing

(File Photo)

Thanks to the massive influx of gold from foreign countries in recent years, China's gold processing industry now ranks first in the world, according to a recently issued official report, China News Service reported on Thursday.

In 2014, China processed 886.09 tons of gold, accounting for 30 percent of the world's total, and making China the world leader in gold processing. This was despite a 24.68 percent decline from the previous year, according to the report, which was published by Ping An Bank.

In recent years, a large amount of gold from Switzerland, the United Kingdom, North America, South Africa, as well as other Asian countries has been brought into China. Although the center of the gold trade is currently still in the West, a significant trend of gold moving from west to east has emerged.

The report therefore suggests that China take advantage of the trend by building a gold logistics center in the Eastern Hemisphere.

In 2014, the volume of gold that entered China’s gold market amounted to 2,106 tons, about 5 percent less than the volume that entered Switzerland, the world’s leader in physical gold transactions at 2,208.1 tons. However, China's gold exports only accounted for 13.17 percent of its supply in the same year, which means that more than 80 percent of the gold was stored in China—3.94 times that of what Switzerland retained. Thus, it seems quite realistic for China to establish a new center for gold trade.

In addition to strong domestic demand, the report points out other advantages in China's quest to become the new center of the global gold market, including a modern logistics service system that is already in place.

(File Photo)