The surge, which comes as Chinese investors look for insurance against rising inflation and currency appreciation, puts Beijing on track to overtake India as the world's largest consumer of gold and a significant force in global gold prices.
The size of the imports -- more than 209 tonnes of gold during the first 10 months of the year, a fivefold increase from an estimate of 45 tonnes last year -- was revealed on Thursday. In the past, China has kept the volume secret.
"Investment is really driving demand for gold," said Cai Minggang, at the Beijing Precious Metals Exchange. "People don't have any better investment options. Look at the stock market, or the property market -- you could make huge losses there".
Beijing has encouraged retail consumption, with an announcement in August of measures to promote and regulate the local gold market, including expanding the number of banks allowed to import bullion.
Shen Xiangrong, chairman of the Shanghai Gold Exchange, who disclosed the import numbers, said uncertainties about the Chinese and global economies, and inflationary expectations, had "made gold, as a hedging tool, very popular".
The rise in Chinese demand could further inflate gold prices. Bullion hit a nominal all-time high of $1,424.10 a troy ounce last month. But adjusted for inflation, prices are far from the 1980 peak of $2,300.
"The trend is undeniable -- gold demand in China is rising rapidly," said Walter de Wet, of Standard Bank in London. China surpassed South Africa three years ago as the world's largest producer. CNN
