Beijing [China], April 10: As the French central bank repatriates gold reserves from the United States, analysts say China should seize this "strategic window" to develop itself into the next global gold hub.
They added that Beijing can leverage policy stability, alongside Hong Kong's strengths in fintech such as blockchain, to build a modern gold trading centre, particularly as policy volatility under US President Donald Trump's second term heightens global concerns and deepens the de-dollarisation trend.
"I think [the French central bank's move] is a signal worth watching it is unusual," said Raymond Yeung, chief Greater China economist at ANZ Bank.
"For China, especially Hong Kong, this is a strategic window that needs to be seized," he added, citing growing doubts over the US dollar-dominated global financial system and the broader investment demand for gold.
The Bank of France has replaced its remaining gold reserves held in New York with the equivalent amount bought in Europe and stored in Paris between July 2025 and January 2026, as reported by Radio France Internationale onSaturday.
Meanwhile, economists in Germany, such as Michael Jaeger, head of the Association of German Taxpayers and the European Taxpayers Association, are also calling on the government to withdraw its gold holdings from the US.
"Trump is unpredictable and he does everything to generate revenue," Jaeger previously told local media. "That's why our gold is no longer safe in the Fed's vaults."
Their concerns come amid heightened policy unpredictability under the Trump administration, as increasingly aggressive foreign policy moves - from threats to take over Greenland to the Iran conflict - have intensified fears that Washington could weaponise its financial power.
Yeung suggested that Hong Kong could aim to become a "modern gold trading centre", for instance, by developing gold futures and trading, while also integrating digital assets and technologies such as blockchain and stablecoins.
"China's policy advantage lies in its stability - in areas such as GDP growth and monetary policy," he said. "At a time of heightened volatility, that stability carries a certain appeal."
According to a statement by the Hong Kong government earlier this year, the city's central clearing system for gold is on track to begin trial operations this year, while it also targets storage capacity exceeding 2,000 tonnes within three years to make Hong Kong "a trusted global vault".
Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered, said China's recent efforts to strengthen gold trading in Shanghai and expand storage facilities in Hong Kong showed that it was seeking to encourage investors to park their wealth in China-linked assets.
"I suppose this would be done through Hong Kong as an international financial centre," he said, while cautioning that European countries may not be easily willing to move their gold to Hong Kong.
The Chinese central bank extended its gold-buying streak for a 17th consecutive month, adding 160,000 ounces to reach a record 74.38 million ounces in March, according to the latest official data.
Late last year, Cambodia was reportedly planning to store some of its gold reserves in China, which would make it one of the first countries to do so, according to Bloomberg, citing people familiar with the matter, who noted a few other countries had also expressed the same interest.
Source: Qatar Tribune
