China has the world’s second largest gold resources

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China's proven natural gold resources reached 12,100 tons by the end of 2016, making it the world's second largest gold-rich nation only next to South Africa, said Zhang Yongtao, vice chairman of the China Gold Association (CGA), at a press briefing last Tuesday.

Last year, total gold transactions in the Chinese market reached 70,000 tons, said Zhang, who expected the volume to exceed 100,000 tons by 2020.

Zhang Yongtao, vice chairman of the China Gold Association (CGA), at a press briefing last Tuesday./ Photo by Huanqiu.com

China has topped the world in terms of gold production for 10 years and gold consumption for four years, according to Xinhua. It aims to increase its annual gold output from the current 450 tons to 500 tons by 2020.

Most gold mines in China sit in east China’s Shandong Province, and roughly one fifth of output is controlled by the China National Gold Group Corporation.

A total of 207 tons of gold were produced in the first half of 2017, down 9.8 percent from a year ago, according to the CGA.

Meanwhile, gold consumption rose nearly 10 percent year-on-year to 545 tons in the six-month period, with consumption of gold bars up more than 50 percent.

it only reported reserves of 1,823 tons as of June 2016

Despite China’s vast gold mines, it only reported reserves of 1,823 tons as of June 2016, which accounts for 2.4 percent of its foreign holdings.