China has reached a turning point for its capital markets. For the first time, the largest domestic exchange-traded fund is no longer one that tracks equities but one that tracks gold.
According to Bloomberg, the Huaan Yifu Gold ETF has overtaken the Huatai-PineBridge CSI 300 ETF, once the flagship vehicle for China’s benchmark stock index and a centerpiece of state-backed market support.
The shift reflects a broad reallocation of Chinese savings away from an unrecovered property sector and volatile equity markets toward an asset increasingly touted as the country’s most reliable store of value.
The shift also mirrors the aggressive accumulation of physical gold. China’s central bank has been an aggressive buyer, adding to its official reserves for 19 consecutive months through May.
These actions indicate that the center of gravity in the bullion market continues to shift from the West to the East.
