China has further boosted its status as the biggest consumer of gold, based on its imports data.

The country reported its first increase in four months for gold imports. China's net purchase of the precious metal in September stood at 44.9 metric tons, up from 41.9 metric ton in August. The rise is likely due to investors seeking to diversify their portfolio.

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According to the data reported by the Hong Kong Census and Statistics Department, the mainland bought 64.8 ton gold in last month, while it exported 19.9 tons. These are higher than those recorded in August, when the mainland just imported 55.2 tons and exported 13.2 ton. Mainland China does not share these statistics.

The data also shows that Swiss gold shipments to China grew by 80 percent in September. Switzerland shipped 35.5 tons gold during the said period, up from 19.9 tons it shipped in August. However, its exports to Hong Kong dipped, from 24 tons to 11.5 tons. These figures have been provided by the Swiss Federal Customs Administration.

China is fast becoming an important destination for gold. Apart from physical gold, there is also an increased demand for financial assets backed by the said commodity.

According to Yang Qing, deputy general manager in the global market department of Bank of China, the quantity of gold in the country's two Shanghai-listed gold-backed ETFs augmented 10 times during the first half of this year.

The increase in ETF demand is likely to counter the decline in demand for gold jewelry. China's top four listed ETF held nearly 30 tons gold as of July.  

Tagschina, Hong Kong Census and Statistics Department, Bank of China