Jittery Chinese investors park their cash here

26-Jun (CNBC) — A rise in Chinese gold imports suggests that investors seeking a safe haven from the turbulence in stock markets may be parking their cash in the precious metal.

China’s gold imports via Hong Kong rose 36 percent month-on-month and 35 percent year-on-year to the highest level since January, Capital Economics said in a note on Friday, citing data from the Hong Kong Census and Statistics Department. Net gold imports from gold dipped to 52.204 tonnes in April from 66.363 tonnes in March.

“We think investors are becoming increasingly worried about a more pronounced correction in China’s stock market and will return to gold to diversify their portfolios,” Simona Gambarini, commodities economist at Capital Economics said in a note.

…”The sharp rise in the local equity market in China is likely to have weighed on gold demand in the past few months. However, investors might be seeking once again the safety of gold, as recent gains in the stock market are deemed unsustainable” Gambarini said.

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