Investors Withdrew 10% Of Gold Reserves From Hong Kong Over The Year
Concerned investors have moved 10% of their gold reserves from Hong Kong to other jurisdictions over the past year, primarily Singapore and Switzerland, according to the FT, citing the head of J Rotbart & Co, Joshua Rothbart, which provides services for storing the precious metal.
"Many customers now consider Hong Kong riskier [for operations] than other territories," Rothbart said. This is especially evident, according to him, after the adoption of the law on ensuring national security in this administrative region of China. "Investors are moving gold from Hong Kong to Singapore because they don't like risk and uncertainty," said Ronan Manley, a representative of bullion star, a Singapore - based company. Customers are concerned about threats to "stability and law enforcement" in the city, he added.
China, as the British publication notes, is the largest consumer of gold in the world, but its exports are limited, which makes Hong Kong a more convenient place for storing the precious metal by both international investors and Chinese entrepreneurs.
The price of gold last Tuesday updated the historical maximum in the face of uncertainty about the exit of countries, primarily the world's largest economy, the United States, from the crisis due to the pandemic and concerns about inflation. During trading on the Comex Exchange (a division of the New York Mercantile Exchange), the price of the metal rose by 1.38% to the closing level of the previous session and reached $2,013.7 per Troy ounce.
On June 30, the Standing Committee of the national people's Congress adopted the law on ensuring national security in Hong Kong. It aims to prevent crimes such as separatism, terrorism, Subversion of state power, and collusion with foreign forces. They are subject to life imprisonment as capital punishment. According to the law, the Central authorities of the PRC create special state security bodies in this administrative region, which will not be subject to the jurisdiction of the Hong Kong administration.
An outbreak of the new coronavirus disease was recorded in late 2019 in Central China and has spread to most States. On March 11, the world health organization recognized it as a pandemic. Since the beginning of the pandemic, about 19.1 million people have been infected with the coronavirus in the world, and about 715 thousand have died.