Chinese investors pulling money out of gold-backed ETFs at a record pace (via Bloomberg) | investingLive

Chinese investors are pulling money out of gold-backed ETFs at a record pace, shifting funds into local stocks instead. The four major onshore gold ETFs—Huaan Yifu, Bosera, E Fund, and Guotai—saw a combined outflow of around 3.2 billion yuan (US$450 million) in July, according to Bloomberg data.

The rotation comes as the CSI 300 Index rose 5.5% in July, marking its best monthly gain since September.

According to Huaan Fund Management analyst Steve Zhou, retail investors are locking in gold profits to pursue stronger equity gains.

While gold has surged about 25% this year, it’s moved sideways since peaking in April. In contrast, Chinese equities have gained traction on government measures aimed at curbing price wars and industrial overcapacity. Commodity stocks, in particular, have rebounded after underperforming for three years—helped by supply-side reforms and the unveiling of a $167 billion hydropower project in Tibet. Still, overall equity ETF flows in Shanghai and Shenzhen remain in negative territory in recent weeks.