(The author is a Reuters Breakingviews columnist. The opinions expressed are his own.)
By Ka Sing Chan
HONG KONG, Jan 30 (Reuters Breakingviews) - The country may account for more than a third of central banks’ bullion purchases last year as it diversified reserves. That helped both push up the price and fuel dealmaking by domestic miners like $158 bln Zijin. But it leaves them exposed to a bear market in the yellow metal.
Full view will be published shortly.
<h3>CONTEXT</h3>
Zijin Gold International, China’s biggest goldminer, has agreed to buy Canada’s Allied Gold for about $4 billion in cash, the companies said on January 26. Chinese miners including Zijin Gold’s majority shareholder Zijin Mining spent up to $4.6 billion on acquiring gold mining assets overseas in 2025, according to Dealogic.
The People’s Bank of China acquired up to 27 tons of gold in 2025, according to official Chinese government data. Yet the country’s central bank could have purchased as much as 250 tons last year through unreported channels, analysts at Société Générale estimated in November. (Editing by Antony Currie; Production by Aditya Srivastav)

600489

AAUC

02259

600547

601899

02899

China's gold fever has led to a surge in M&A activity among domestic miners, with Zijin Gold International acquiring Canada's Allied Gold for $4 billion. The country accounted for over a third of central banks' gold purchases last year, pushing prices up and fueling overseas acquisitions. However, this strategy leaves miners vulnerable to a potential bear market in gold. Analysts estimate that China's central bank may have purchased up to 250 tons of gold last year, significantly more than the reported 27 tons.

BREAKINGVIEWS-China's gold fever underwrites risky M&A binge