Analysis of Changes in China's Gold Investment Demand and Innovation Strategies for Product Matrices

Based on the information searched, I will provide you with a systematic analysis of changes in China’s gold investment demand and innovation strategies for product matrices.

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According to data from the China Gold Association, China’s gold consumption in the first three quarters of 2025 showed a significant structural shift[1]:

Consumption Category	Consumption Volume (tons)	Proportion
Gold Bars and Coins (Investment Grade)	352.116	51.6%
Jewelry Gold (Consumer Grade)	270.036	39.5%
Other Gold Usage	60.578	8.9%
Total	682.73	100%

This is the first time in 30 years that investment-grade gold consumption has exceeded jewelry consumption, marking the official entry of China’s gold market into a new investment-driven phase[2].

• In 2025, the share of gold in global central bank reserves rose to 20%, surpassing the euro to become the second-largest reserve asset after the U.S. dollar[1]
• The People’s Bank of China has increased its gold holdings for 13 consecutive months, purchasing a total of 24 tons in the first three quarters[1]
• The global “de-dollarization” trend is driving central banks of various countries to strategically allocate gold

• International gold prices surged to nearly $2,000 per ounce in 2025, with an annual increase of approximately 60%[3]
• The gold price for jewelry from mainstream domestic brands rose from approximately RMB 800 per gram at the beginning of the year to approximately RMB 1,360 per gram at the end of the year[1]
• Investment gold bars delivered returns of over 40%, while gold ETFs posted returns of over 50%[2]

• As of the end of November 2025, the scale of domestic gold ETFs exceeded RMB 230 billion, representing a nearly 4-fold increase from RMB 66 billion a year earlier[2]
• In 2025, 61 “gold+” wealth management products were launched in the bank wealth management market[4]

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The current Chinese gold market has formed a multi-level product system to meet the differentiated needs of different investors:

Product Type	Investment Threshold	Liquidity	Storage Method	Target Investors
Physical Gold Bars/Coins	Medium to High (multiple weight options)	Low	Self-storage / Bank custody	Long-term investors, those preferring physical holdings
Gold ETF	Low (starts at RMB 100)	High (traded on exchanges)	Electronic holdings, no storage required	Investors seeking convenient trading and flexible allocation
Bank Accumulated Gold	Low (supports fixed-investment)	Medium	Electronic account	Investors making small fixed-investments, risk-averse investors
Gold Jewelry	Medium to High	Low	Self-storage	Investors seeking both consumption and value preservation
Gold-linked Wealth Management Products	Medium	Medium	Product net value	Investors seeking “downside protection with upside potential”

• Advantages
  : Provides a tangible sense of “true ownership”, independent of the financial system, avoiding counterparty risk[5]
• Disadvantages
  : Requires consideration of storage, security and insurance costs; spreads or discounts exist in buying and selling
• Trends
  : Leading enterprises such as China Gold, leveraging their full industrial chain advantages, are developing cost-effective standardized investment gold bars[6]

• Advantages
  : High liquidity, convenient trading (via securities account); eliminates the need for physical storage and authentication; high transparency[5]
• Representative Product
  : Gold Fund ETF (SH518800), with a net asset value of RMB 32.294 billion as of January 2026[7]
• 2025 Performance
  : Capital inflows hit a new high since 2020, becoming a mainstream allocation method[5]

• Model
  : Purchase gold shares via fixed-amount regular investments or active timing, to average out long-term investment costs[5]
• Functions
  : Supports redemption, exchange, pledge, etc.
• Features
  : Low threshold, easy to operate, suitable for “moonlighters” and small investors

• Dual Attributes
  : Material value + emotional/decorative value (self-pampering demand)[5]
• Market Changes
  : High gold prices have suppressed sales, but light-weight, high-value-added products are popular; categories such as ancient-style gold and fortune beads are favored[1]
• Investment Attribute
  : The selling price includes design fees, craft fees and brand premiums, which cannot be fully recovered upon recycling

• Type 1
  : Fixed-income + Gold (bond base + approximately 5% gold position)[4]
• Type 2
  : Gold-linked structured wealth management products (option structures: automatic trigger, binary structure, shark fin, etc.)[4]
• 2025 Data
  : There are 50 existing gold-themed wealth management products, 52% of which are Level 2 (low to medium risk)[4]

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The current gold jewelry industry faces severe homogeneous competition:

• Product Homogenization
  : Gold bars, craftsmanship and designs are highly similar
• Channel Homogenization
  : Store layouts and promotion methods are similar
• Price Homogenization
  : Reliance on low-end competition based on “gold price comparisons”
• Service Homogenization
  : Lack of differentiated value-added services

Leading enterprises in the industry such as China Gold have taken the lead in deploying the “gold + technology” strategy[3]:

• AI Design System
  : Jointly developed a generative intelligent design system for gold jewelry with Shanghai Jiao Tong University, enabling second-level responses to consumers’ personalized needs[3]
• End-to-end Digitization
  : A systematic project covering design, production, channels and supply chain
• App Ecosystem Construction
  : The “China Gold” App was launched in December 2025, connecting the full link of online purchase, offline pickup and gold repurchase[6]

Tap into traditional cultural IPs to enhance product value:

• Themed products such as the “Four Ancient Capitals Series”, “Dunhuang Series”, and “National Treasure Gold 3.0”[6]
• Deeply integrate traditional cultural elements with modern aesthetics and intelligent craftsmanship
• Positioned as the “Chief Expressor of Chinese Cultural Gold”, launching differentiated products with both collection value and wearability

Build a channel matrix of “wide coverage + in-depth penetration + characteristic supplementation”[6]:

Channel Type	Strategic Direction
High-end Direct Sales	Flagship store leadership + sub-brand development
Commercial Cooperation	Enter 133 malls under China Resources Mixc via a “head-to-head” model
Online Channels	App closed-loop ecosystem + live-stream e-commerce
Characteristic Channels	Duty-free shops + Hong Kong and Macau retail

Break free from the trap of “gold price comparisons” and establish a multi-tiered product system:

High-end Sub-brand Stores → SI4.0 High-end Stores → Standard Stores → Overseas Stores
     ↓              ↓           ↓        ↓
Cultural Premium   Brand Premium  Cost-effectiveness  Internationalization

• Repurchase Service
  : Connect the closed loop of “online order + offline pickup + online repurchase”[6]
• Customization Service
  : Respond to the “custom gold shop” trend (relevant topics on Xiaohongshu have received over 130 million views)[1]
• Custody Service
  : Provide value-added services such as gold custody and insurance

Institutional investors are shifting gold from a single asset to a portfolio stabilizer:

• Allocation Logic
  : Allocate 5% or a higher proportion of gold to the existing stock-bond portfolio[5]
• Core Value
  :
  • Diversify risks (low correlation with stocks and bonds)
  • Long-term returns (average annual return of 14.7% for gold denominated in RMB over 10 years)[5]
  • Hedge against inflation and credit risks

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Institution	2026 Gold Price Forecast	Core Logic
World Gold Council	Break through $5,000 per ounce (15%-30% increase)[1]	Central bank gold purchases + continuation of interest rate cut cycle
JPMorgan Chase	Up to $6,000 per ounce[1]	Shift from U.S. dollar asset allocation to gold
UBS	$4,800 per ounce by year-end[1]	Need to be wary of consolidation risks

Investor Type	Recommended Allocation	Product Selection
Conservative	5%-10%	Bank Accumulated Gold + Fixed-income + Gold Wealth Management Products
Moderate	10%-15%	Gold ETF + Investment Gold Bars
Aggressive	15%-20%	Gold ETF + Gold Stocks + Futures
Long-term Allocation	10%-15%	Physical Gold Bars + Gold ETF Fixed-investment

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China’s gold market is undergoing a historic transformation from

to . In 2025, investment-grade gold consumption surpassed consumer demand for the first time, marking that the of gold is surpassing its .

Amid homogeneous competition, the paths to break through are:

1. Technologization
   : AI-empowered design, digital channels, end-to-end services
2. Cultural Integration
   : Tap into traditional IPs to build unique product value
3. Tiering
   : Establish a multi-tiered product matrix to meet the needs of different customer groups
4. Service-oriented Transformation
   : Shift from product sales to integrated service provider
5. Institutionalization
   : Promote the “gold+” strategy as a standard for asset allocation

Looking ahead to 2026, the core logic supporting the long-term bull market for gold remains solid. Global central bank gold purchase demand, the Federal Reserve’s interest rate cut cycle, and the “de-dollarization” trend will continue to provide medium- to long-term support for gold prices. Investors should achieve effective allocation of gold assets through a diversified product matrix based on their own risk preferences.

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[1] Sina Finance - The Bullish Logic for the Gold Market Will Continue in 2026 (https://finance.sina.com.cn/jjxw/2026-01-07/doc-inhfmtvz7761967.shtml)

[2] Jiefang Daily - A Breaks 4,000 Points on First Trading Day, Gold Market Surges (https://www.jfdaily.com/news/detail?id=1047147)

[3] Securities Times - Anchoring the “Gold + Technology” Mainline, China Gold Drives High-quality Development with “Three Carriages” (https://www.stcn.com/article/detail/3590648.html)

[4] 21st Century Business Herald - Annualized Returns Up to 20%! Full-year Returns of “Gold+” Wealth Management Products Released (https://www.21jingji.com/article/20260109/herald/d94b071a15d7d442108d0fb7686cb8d9.html)

[5] Sina Finance - Comprehensive Analysis of Gold Investment Methods: From Gold Bars to ETFs (https://finance.sina.com.cn/roll/2025-12-16/doc-inhaysim8453929.shtml)

[6] The Beijing News - Anchoring the “Three Modernizations” Strategic Direction, China Gold Maps Out a New Industrial Blueprint with Core Strengths (https://m.bjnews.com.cn/detail/1768307944129672.html)

[7] Xueqiu - Gold Fund ETF (SH518800) (https://xueqiu.com/S/SH518800)