Hong Kong's net gold exports to China fell 5.4 percent to 89.745 tonnes in January from 94.847 tonnes in December, reflecting a slowdown in demand from record levels in 2013. Total gold exports to mainland China from Hong Kong slipped to 102.637 tonnes in January from 126.644 tonnes in December, according to data from the Hong Kong Census and Statistics Department.
Chinese demand provided significant support to the gold market in 2013, when a 12-year bull run came to an end and global bullion prices fell 28 percent. China imported about 1,158.162 tonnes from Hong Kong in 2013, more than double its 557.478 tonnes in 2012, according to data from the Hong Kong government.
Premiums for Shanghai gold futures over cash gold provided a sign that China's imports could be down again this month. Premiums for 99.99 percent purity gold on the Shanghai Gold Exchange over cash gold were around 50 US cents to $1 an ounce on Tuesday, down from a high of around $11 last week, indicating declining demand and making it less attractive for importers to bring gold into China. China overtook India as the world's biggest gold consumer in 2013, according to the World Gold Council, with overall demand of 1,065.8 tonnes, largely driven by a 29 percent rise in jewellery demand and a 38 percent increase in coin and bar buying.
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