Hong Kong gold push delivers record US$732 million ETF inflows in April
As investors hedge against global risks, Hong Kong’s gold ETF inflows reinforce its emergence as a key trading centre
Hong Kong’s push to become a gold trading hub is beginning to bear fruit, with the city recording a surge in gold exchange-traded fund (ETF) inflows in April as geopolitical tensions fuel investor demand for the yellow metal, according to industry participants.
Physically backed gold ETFs in Hong Kong attracted a record US$732 million last month, according to the World Gold Council. That represented 41 per cent of Asia’s US$1.8 billion inflows and 11 per cent of the global total of US$6.6 billion.
The CSOP Gold ETF, which listed in April on the Hong Kong stock exchange, debuted with assets under management of about US$720 million, making it the city’s largest local physical gold ETF to date.
Five gold ETFs with combined assets of HK$28 billion (US$3.6 billion) were listed as of April, exchange data showed. These products give investors a straightforward way to trade gold, much like buying and selling stocks.