China’s appetite for gold has reached a new peak, as the Huaan Yifu Gold ETF has overtaken the once-dominant Huatai-PineBridge CSI 300 ETF to become the nation’s largest exchange-traded fund. The shift signals a dramatic move by investors toward safe-haven assets amid a clear reduction in state-backed support for the stock market, and reflects a broader global surge in gold buying by central banks.
As of June 2026, the Huaan Yifu Gold ETF’s market capitalization reached 90 billion yuan, overtaking the CSI 300 ETF, which now stands at 83 billion yuan. The CSI 300 ETF was previously a favored instrument for China’s state-backed “national team” during periods of heightened support for stock prices. The change at the top demonstrates how dampened official support has prompted a redirection of investor capital, with many now choosing the relative safety of gold.
Global gold demand is also on an upswing, particularly from central banks. According to recent reports, world central banks acquired over 41 tonnes of gold in May 2026, the largest monthly purchase since November 2025. This follows 17 tonnes bought in April and represents the third month of strong buying this year.
Poland led gold acquisitions for the second month running, adding 18 tonnes in May, increasing its gold reserves to 614 tonnes—a record high. Year-to-date purchases by Poland now total 64 tonnes.
China continues to bolster its gold reserves, adding 10 tonnes last month—the largest monthly addition since December 2024. The nation’s official gold holdings now stand at a record 2,331 tonnes. Notably, gold accounts for nearly 9% of China’s total foreign exchange reserves, close to an all-time high. May marked the 20th straight month of gold purchases by the People’s Bank of China.
The continued accumulation of gold by global central banks signals a robust demand for the precious metal, often seen as a store of value during times of economic uncertainty or declining confidence in traditional equities. Market analysts suggest this trend could have lasting implications for both the gold market and broader global investment patterns, especially as central banks and retail investors seek safety amid geopolitical and economic uncertainty.
