China's net gold imports via Hong Kong double in January

China's net gold imports via main conduit Hong Kong doubled in January from the previous month, data showed on Tuesday, as banks in the world's top consumer likely stocked up at the beginning of the year.

Net imports of the metal via Hong Kong to China rose to 38.373 tonnes in January from 19.22 tonnes in December, according to data from the Hong Kong Census and Statistics Department.

Total gold imports via Hong Kong surged 75.1 percent to 42.276 tonnes last month from 24.149 tonnes in December.

"Import quotas (for banks) start from scratch in January," said  Samson Li, a Hong Kong-based senior precious metals analyst at Refinitiv GFMS.

In December, China's net gold imports through Hong Kong nearly halved to 19.22 tonnes as the central bank likely limited import quotas for its banks.

While imports rose in January, it was still lower than expected, given the increased gold demand seen by some institutions in the first quarter of 2019, Li added.

China's 2018 gold consumption rose by 5.73 percent year-on- year to 1,151.43 tonnes, the state-run Securities Times reported in January, citing data from the China Gold Association.

In January, demand for physical bullion gathered pace in China ahead of the Lunar New Year holiday, when gold is considered as a popular gift. Investment demand also saw a rise in China during the month.

Spot gold prices rose nearly 3 percent in January.

China does not provide trade data on gold, so the Hong Kong figures serve as a proxy for flows to the mainland.

The Hong Kong data, however, might not provide a full picture of Chinese purchases because gold is also imported via Shanghai and Beijing.