Where Swiss Gold Meets the Chinese Market
When it comes to physical gold, there’s no getting around the Switzerland–China axis. Switzerland is the world’s largest exporter of refined gold; from January through June 2026 alone, 182 metric tons of gold bars (cast) were exported to China.
Source: BAZG – SwissImpex
(https://www.swissimpex.admin.ch/dashboard)
This makes China by far the most important buyer of Swiss gold. At the same time, China is also considered the world’s largest gold producer, with approximately 384 metric tons in 2025, and, together with India, ranks among the world’s largest gold consumers. A perfect combination.
Source: World Gold Council – Global Mine Production
(https://www.gold.org/goldhub/data/gold-production-by-country)
This enormous volume doesn’t just exist on paper—it must be physically transported. This is where Shanghai comes into play. As one of the world’s most dynamic logistics hubs, the metropolis serves as one of Asia’s most important logistics and trading centers for precious metals via Pudong International Airport and the deep-sea ports of Yangshan and Waigaoqiao. For specialized logistics providers, this entails an enormous responsibility. The challenge is to deliver the uninterrupted flow of precious metals directly to Asian financial centers with Swiss precision and absolute security.
New Developments in the Precious Metals Industry
The Chinese precious metals market is changing at a rapid pace. Anyone who wants to succeed in this market must be familiar with the latest regulatory and structural trends:
- The PGM Boom in Guangzhou: China is driving massive growth in the platinum group metals (PGM) sector. A major milestone was the launch of new platinum and palladium futures on the Guangzhou Futures Exchange (GFEX) in November 2025. This launch created the first platform through which all market participants can effectively hedge price risks. China’s PGM market is thus entering a new phase of development. Traditional drivers of demand are increasingly being supplemented by investments, hydrogen technologies, AI applications, and new trading instruments. As a result, demand for platinum group metals is expected to continue rising.
- New VAT Rules Effective November 1, 2025: While standard trading on the Shanghai Gold Exchange (SGE) continues to be subject to the existing VAT rules, there have been changes regarding the physical withdrawal of gold. The tax treatment of investment gold remains largely unchanged, while the allowable input tax credit on the procurement costs of gold jewelry manufacturers has been reduced from 13% to just 6%. This increases the tax burden on jewelry manufacturers, which may drive up the price of jewelry. This is expected to lead to a decline in demand for jewelry. However, as early as the first quarter of 2026, a 42% year-over-year increase in investment gold was observed, along with a decline in gold jewelry purchases.
Source: World Gold Council – Gold Demand Trends: Q1 2026
(https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q1-2026)
- Closer ties with Hong Kong: The physical connection between mainland China and Hong Kong is growing ever closer. The establishment of the Hong Kong Precious Metals Central Clearing Company (HKPMCC) and the construction of new vaults in Hong Kong (starting in the second half of 2026) will create a state-of-the-art logistical bridge. This will facilitate duty-free access to the Chinese market for international investors, improve China’s infrastructure for gold trading, and strengthen the role of the Shanghai Gold Exchange in the long term.
Who’s in Charge
To efficiently manage the flow of physical commodities, Shanghai has a highly specialized infrastructure of trading venues and information services. These entities fulfill different, clearly defined roles in the market:
What Is the Shanghai Metals Market (SMM)?
The SMM is China’s leading independent pricing platform and information source. It is considered a key resource for market analysis, price data, and industry news in the metals and mining sectors. Every day, the SMM publishes spot prices for over 300 price indices and price assessments, including base metals, precious metals, and rare earths. These serve as an important global reference for trade contracts.
What is the Shanghai Futures Exchange (SHFE)?
The SHFE is the country’s leading futures exchange. Standardized futures contracts for gold, silver, and base metals are actively traded there to hedge against price fluctuations or to speculate on price changes. It enables price hedging and provides a regulated trading venue with standardized contracts and clearly defined trading rules.
What is the Shanghai Gold Exchange (SGE)?
Operating under the supervision of the People’s Bank of China, it regulates the physical market. The SGE is the world’s largest exchange for physical gold. This is where the official reference price for the Chinese domestic market is set. Due to the enormous volume of physical delivery and its own pricing mechanism, the SGE and the People’s Bank of China are gaining increasing influence over the global gold price.
A key event is the industry gathering centered around Shanghai Platinum Week (SPW). This event brings together industry leaders, traders, and investors and features a wide range of conferences, seminars, and exhibitions. Market trends, investments, and new technologies are discussed. SPW serves as an important platform for international cooperation and offers insights into the dynamic market and the technological advancements driving the future of this sector.
Our physical presence on the ground allows us to reliably support these international trade flows. This enables us to efficiently coordinate the key interfaces between mines, refineries, financial institutions, logistics providers, and trading partners. In this way, we provide our international clients with direct and transparent access to one of the world’s most active markets.
How Do Metal Futures Work?
Trading physical precious metals directly in large quantities is cumbersome and inefficient in practice. That is why the financial world uses standardized contracts: These contracts obligate buyers and sellers—provided the contract is held until maturity—to buy or sell a specific quantity of a precious metal at a predetermined price at a future date. These contracts are called metal futures. They legally specify the quantity, purity, and price at which the precious metal will be traded. In practice, these contracts serve two purposes:
- Speculation: Traders bet on rising or falling prices to make a profit.
- Hedging: Mining companies, refineries, or industrial buyers hedge against extreme price fluctuations. For example, if a market participant expects prices to fall (e.g., from USD 3,400 to USD 3,200 per ounce), a corresponding hedge using a futures contract protects against potential losses upon resale. The associated risk varies depending on the contract term and maturity date.
The logistical foundation: Most gold futures are closed out before maturity and are not physically delivered. However, behind the scenes, the futures exchanges require a highly efficient logistics network. Specialized partners must guarantee that the bars are physically available in the exchanges’ approved warehouses as soon as a contract matures for physical delivery.
Why Helveticor? Our Strengths in a Dynamic Asian Market
In this dynamic and strictly regulated environment, trust is good. Swiss precision and on-site oversight are better. We bring “Swissness” to Shanghai. Our office is located right in Pudong, enabling us to respond quickly to market changes.
- Direct access to the Chinese and Asian markets:
Our close proximity to key trading hubs such as the SGE and leading financial institutions ensures highly efficient processes. Because we have a physical presence in Shanghai, we can react directly to market changes and support your trading flows without delay.
- Direct Access to the Chinese and Asian Markets:
Our close proximity to key trading hubs such as the SGE and leading financial institutions ensures highly efficient operations. Because we have a physical presence in Shanghai, we can respond directly to market changes and manage your trading flows without delay.
- World-Class International Connectivity:
We guarantee optimal connections by air, sea, and land between Asia, Europe, and North America. Thanks to the first-class infrastructure at key Asian freight hubs, we provide seamless, cross-border value-added transport for shipments of any size.
- Local Expertise with a Global Network:
Our in-depth regional market knowledge is the key to smooth operations, as we have a precise understanding of local customs procedures as well as the complex Chinese import and tax regulations. Combined with our international logistics experience, we perfectly align Asian market dynamics with global reach.
- Efficient decision-making processes for maximum flexibility:
In the fast-paced precious metals industry, time is a critical success factor. That’s why we rely on dedicated contacts and rapid coordination. This allows us to respond flexibly and provide tailored solutions to your individual logistical security needs.
- Swiss Quality Standards for Uncompromising Security:
Reliable processes and the highest security standards are our top priority throughout the entire supply chain. We apply Swiss precision, discretion, and integrity on the ground, ensuring that your valuable shipments are always protected to the utmost along the entire route between Europe and Asia.
The Chinese precious metals market never sleeps and continues to evolve at a breathtaking pace—whether it involves new VAT regulations, new PGM futures, or various trading venues and futures exchanges. We support these trade flows with local expertise and global reach. Swiss quality standards—which encompass precision, integrity, confidentiality, and quality—remain a constant priority.
Get in touch with our on-site experts and receive professional advice:
Helveticor International Freight Forwarding (Shanghai) Co. Ltd.
Unit 3125
506 Shangcheng Road
Pudong New Area
Shanghai, China
customerservice.pvg@helveticor.ch
