China Opens First Offshore Gold Vault Allowing Gold Delivery Against Yuan To Smooth Yuan Adoption For International Trade Payment

We'll Take The Gold, Thanks

In early May 2025, this Substack noted an article in the South China Morning Post (SCMP) that China was opening its own global network of gold vaults allowing Chinese yuan to be turned in for gold delivery.

To quote the SCMP article at the time:

“By establishing a global network of gold delivery and storage facilities where Chinese Yuan can be directly exchanged for physical gold, China is moving to make the Yuan more widely accepted globally as a medium of exchange and also allowing Chinese purchases of oil and food, currently paid with US Dollars (USD), to be made with Yuan.”

Two months later the SCMP announces that China has moved quickly and opened its first offshore vault in Hong Kong.

Gold can be exported globally from Hong Kong whereas gold cannot be exported from China proper (with one exception that gold must first be imported from outside China and held in the Shanghai Free Trade Zone before delivery).

China is clearly moving rapidly to smooth the way towards adoption of the yuan for international trade settlement with convertibility of the yuan into gold on the world stage.

Standby for China’s next overseas vault opening.

Best regards,

David Jensen