GoldFix has argued that China’s gold strategy is also a yuan strategy. Physical delivery, offshore vaults and gold trading give foreign institutions more reasons to accept and use the currency.
Evelyn Cheng’s CNBC newsletter, How a gold-buying spree helps the yuan go global, now describes that connection. Its analysts explain the purpose behind the infrastructure GoldFix has followed with Eric Yeung: giving overseas holders a place to deploy their renminbi.
China’s decades-long push for yuan internationalization is getting a lift from the buildout of Hong Kong as a gold trading center — denominated in the Chinese currency.
“As those trading volumes grow, there would be a growing volume of the physical gold trade that is denominated in RMB and not linked in USD,” said Charles Chang, managing director and Greater China country lead for corporate ratings at S&P Global Ratings.
The Chinese yuan, also known as the renminbi, accounts for a fraction of international transactions in a global financial system dominated by the U.S. dollar. Analysts I spoke with don’t expect major changes to that dynamic anytime soon, but Beijing’s gold purchases and Hong Kong trading platform are just the latest steps toward supporting greater use of the yuan globally.
“The challenge with internationalizing the RMB it’s somewhat more challenging to find places where you can use the RMB,” Chang said. “In terms of gold particularly, if the RMB that the buyer receives can be converted to gold, then it gives more channels for the spending to be done.”
Hong Kong linked its gold vault with Shanghai last year, allowing yuan-denominated physical delivery to international institutions, CNBC reports. The planned expansion from 150 tonnes to more than 2,000 tonnes over three years would increase the capacity to handle that business. Capacity is distinct from actual metal holdings or turnover.
GoldFix’s Earlier Work
On July 6, 2025, in China Will Be the World’s Gold Trading Hub Soon, GoldFix described the purpose: “gold for China is a tool to shape trade, build trust, and to move the yuan onto the world stage.”
On June 24, 2026, GoldFix’s Thesis: China’s RMB Internationalization via Gold Collateral, co-authored with Eric Yeung, stated: “That structure would allow China to internationalize the RMB by surrounding it with gold liquidity rather than backing it mechanically with gold.”
On September 9, Here is China’s Gold End-Game, also written with Yeung, explained Delivery Connect: “Gold can serve as a link between the renminbi and an internationally recognized reserve asset.”
CNBC’s analysts are describing that same link. Foreign institutions receiving yuan gain access to gold through offshore trading and delivery. That supports GoldFix’s explanation of why China has been building the infrastructure.
GoldFix’s thesis with Yeung extends into gold’s use in financing. CNBC establishes the trading and delivery connection; formal collateral treatment and broader gold-backed lending require evidence of the rules and transactions.
“China’s 23-month gold buying streak reinforces the credibility of the renminbi’s internationalization drive,” said Hao Zhou, head of research and chief economist at Guotai Junan International in Hong Kong.
“By steadily increasing gold reserves, Beijing is strengthening the long-term backing of its financial system and reducing reliance on dollar-denominated reserve assets,” he said. “While gold alone will not determine the RMB’s global role, it enhances confidence in the currency and supports broader efforts to expand its use in trade, investment and official reserves.”
The reserve purchases and offshore market serve related purposes. The first supports confidence; the second gives foreign holders a transaction they can complete with yuan.
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