Pursuits

Chinese Investors See Comfort in Gold ETF

  • Commodity ETFs in China post biggest inflow of all countries
  • Capital flight elevates risks, Washington Crossing says

Why Money Keeps Flowing Out of China

Lock
This article is for subscribers only.

Add a weakening yuan and capital outflows from China to the global forces helping boost demand for gold.

In the week through Monday, China attracted $52 million, the biggest inflow into commodity-linked exchange-traded funds of all countries tracked by Bloomberg. Huaan Yifu Gold ETF, China’s largest ETF backed by raw materials, is getting all the attention, attracting almost $72 million last week, more than enough to offset outflows from its peers. Globally, some $230 million was withdrawn from commodity ETFs for the week.