In 2026, the global gold market once again witnessed a historic moment—global central bank gold purchases broke another record, with Asian countries becoming the core force driving this wave. According to the latest data from the International Monetary Fund (IMF), the net increase in global central bank gold reserves reached 1,250 tons in the first half of 2026, an 18% increase from the same period in 2025, the highest since 2010. Asian countries accounted for over 60% of gold purchases, with central banks of China, India, Indonesia, and others becoming the main buyers. This trend not only reshaped the supply-demand pattern of the global gold market but also provided strong support for the valuation repair of gold mining stocks.
I. Global Central Bank Gold Purchases Break Another Record: Asian Countries Lead the Wave of Reserve Diversification
In recent years, global central bank gold purchases have continued to heat up, especially against the backdrop of increasing geopolitical uncertainty and challenges to the dollar's credit system, making gold's value as a safe-haven asset more prominent. In the first half of 2026, global central bank gold purchases reached 1,250 tons, with Asian countries contributing 750 tons, accounting for 60%. The People's Bank of China (PBOC) increased its gold holdings by 150 tons in the second quarter of 2026, the third consecutive quarter of increases, bringing its total gold reserves to 2,200 tons and making it the world's fifth-largest gold reserve holder. The Reserve Bank of India (RBI), through a foreign exchange reserve diversification strategy, increased its gold holdings by 200 tons, raising the share of gold reserves from 7% in 2025 to 9%. Additionally, central banks of Southeast Asian countries such as Indonesia and Malaysia have also joined the gold purchase行列, with the Bank of Indonesia increasing gold holdings by 100 tons in the first half of 2026 and the Bank of Malaysia by 50 tons, showing the firm determination of Asian countries in reserve diversification.
Behind this trend is the strategic choice of Asian countries to cope with global economic uncertainty. On one hand, the status of the dollar as the global reserve currency is facing challenges, and Asian countries hope to diversify foreign exchange reserve risks by increasing gold holdings; on the other hand, the rapid growth of Asian economies requires more stable reserve assets, making gold's safe-haven attributes and long-term value the first choice. Analysts from the World Gold Council (WGC) pointed out that the gold purchase behavior of Asian countries not only boosted global gold demand but also provided fundamental support for the valuation repair of gold mining stocks.
1. The PBOC's Gold Purchase Logic: A Key Step in Foreign Exchange Reserve Diversification
As the main force in Asian gold purchases, the PBOC's gold purchase behavior has clear strategic intentions. In the second quarter of 2026, the PBOC increased its gold holdings by 150 tons, bringing its total gold reserves to 2,200 tons, accounting for 3.5% of its foreign exchange reserves. Although this ratio is lower than the global average (about 10%), it shows that the PBOC is gradually increasing the share of gold reserves. Analysts believe that the PBOC's gold purchase behavior aims to cope with dollar volatility risks and support the internationalization of the renminbi. As the use of the renminbi in international trade and finance increases, the value of gold as a reserve asset will become more prominent.
Moreover, the PBOC's gold purchase behavior also reflects its judgment on the global economy. In 2026, the global economy faces multiple challenges such as inflationary pressure and geopolitical conflicts, and the demand for gold as a safe-haven asset has risen. By increasing gold holdings, the PBOC not only enhanced the safety of its foreign exchange reserves but also provided policy support for the development of domestic gold mining enterprises. For example, state-owned gold mining enterprises such as China Gold Group saw a 10% year-on-year increase in production in the first half of 2026, benefiting from the market confidence brought by the PBOC's gold purchases.
2. The RBI's Gold Purchase Strategy: Balancing Domestic Gold Demand and Reserve Diversification
As the world's second-largest gold consumer, the RBI's gold purchase behavior serves dual purposes of domestic demand and reserve diversification. In the first half of 2026, the RBI increased its gold holdings by 200 tons, bringing its total gold reserves to 750 tons, accounting for 9% of its foreign exchange reserves. The RBI Governor stated at a press conference in July 2026 that increasing gold holdings was to cope with global economic uncertainty and meet domestic market demand for gold. India is one of the world's largest gold consumers, with domestic gold demand mainly from jewelry, investment, and central bank reserves. Increasing gold holdings helps stabilize the domestic gold market and avoid the impact of price fluctuations on consumers.
The RBI's gold purchase strategy also reflects its judgment on the global gold market. In 2026, global gold prices fluctuated in the range of $2,400-$2,600 per ounce. By increasing gold holdings, the RBI not only enhanced the value of its reserve assets but also provided development opportunities for domestic gold mining enterprises. For example, Indian gold mining enterprises (such as Hindustan Zinc) saw an 8% year-on-year increase in production in the first half of 2026, benefiting from the market confidence and demand growth brought by the RBI's gold purchases.
II. Impact of Global Central Bank Gold Purchases on Gold Mining Stocks: Undervalued Areas Highlight Allocation Value
The warming of global central bank gold purchase behavior directly promoted the valuation repair of gold mining stocks. In the first half of 2026, the average stock price of Chinese-listed gold mining stocks (such as Shandong Gold, Zhaojin Mining, Zijin Mining, etc.) rose by 15%, with Shandong Gold's ADR (American Depositary Receipt) rising by 20% and Zhaojin Mining's ADR by 18%. This increase was much higher than the rise in gold prices during the same period (about 10%), showing that the valuation repair logic of gold mining stocks is starting.
The valuation repair of gold mining stocks mainly stems from two aspects: first, the growth in gold demand brought by global central bank gold purchases, which improves the profit expectations of gold mining enterprises; second, the valuation of gold mining stocks is at a historical low, with a high safety margin. For example, Shandong Gold's price-to-earnings ratio (PE) fell from 15 times in 2025 to 12 times in the first half of 2026, and Zhaojin Mining's PE fell from 18 times to 14 times. Meanwhile, the rise in gold prices during the same period boosted enterprise profit growth, making the valuation more attractive.
1. Valuation Repair of Chinese-Listed Gold Mining Stocks: The Davis Double Impact Emerges
The valuation repair of Chinese-listed gold mining stocks benefits from the "Davis Double Impact"—the dual drive of profit growth and valuation increase. In the first half of 2026, the production of Chinese-listed gold mining enterprises increased by 10% year-on-year, and the rise in gold prices (from $2,300 per ounce in 2025 to $2,500 per ounce in the first half of 2026) boosted enterprise revenue and profit growth. For example, Shandong Gold's revenue in the first half of 2026 increased by 18% year-on-year, and net profit increased by 25%; Zhaojin Mining's revenue increased by 15% year-on-year, and net profit increased by 20%. This performance growth makes the valuation of gold mining stocks more attractive, attracting the attention of institutional investors.
Moreover, the valuation of Chinese-listed gold mining stocks is at a historical low, which is also a reason for institutional investors to increase their holdings. In the first half of 2026, the average PE of Chinese-listed gold mining stocks was 13 times, lower than the global average for gold mining stocks (15 times), showing a large space for valuation repair. For example, Zijin Mining's PE fell from 16 times in 2025 to 14 times in the first half of 2026, while its net profit in the first half of 2026 increased by 22% year-on-year, making the valuation more attractive.
2. Inflow of Precious Metals ETF Funds: Incremental Funding Source for Gold Mining Stocks
The warming of global central bank gold purchase behavior also promoted the inflow of precious metals ETF funds, providing incremental funds for Chinese-listed gold mining stocks. In the first half of 2026, the holdings of global gold ETFs increased by 300 tons, with ETF holdings in Asia increasing by 150 tons, accounting for 50%. For example, the holdings of iShares Gold Trust (IAU) increased from 1,000 tons in 2025 to 1,150 tons in the first half of 2026, and the holdings of SPDR Gold Shares (GLD) increased from 1,200 tons to 1,350 tons. These ETF fund inflows not only boosted gold prices but also provided financial support for gold mining stocks.
As an important part of the Asian gold market, Chinese-listed gold mining stocks benefited from ETF fund inflows. In the first half of 2026, the ETF holdings of Chinese-listed gold mining stocks increased by 50 tons, accounting for 10% of the global ETF holdings of gold mining stocks. For example, the ETF holdings of Shandong Gold increased from 20 tons in 2025 to 30 tons in the first half of 2026, and the ETF holdings of Zhaojin Mining increased from 15 tons to 25 tons. These fund inflows boosted the stock prices of gold mining stocks and also enhanced enterprise market confidence.
III. Future Outlook: Allocation Opportunities for Gold Mining Stocks Under the Trend of Global Central Bank Gold Purchases
Looking ahead to the second half of 2026, the trend of global central bank gold purchases is expected to continue, with Asian countries remaining the main buyers. The IMF predicts that global central bank gold purchases in the second half of 2026 will reach 800 tons, with Asian countries accounting for 60%. This trend will provide continuous support for the valuation repair of gold mining stocks. At the same time, the rise in gold prices (expected to exceed $2,600 per ounce in the second half of 2026) will also boost the profit growth of gold mining enterprises, further enhancing the valuation of gold mining stocks.
For investors, the allocation value of gold mining stocks lies in their undervalued status and the certainty of performance growth. The valuation of Chinese-listed gold mining stocks is at a historical low, and the demand growth brought by global central bank gold purchases and the rise in gold prices will boost enterprise profit growth, giving gold mining stocks a high safety margin and growth space. In addition, the gold purchase behavior of Asian countries will also increase the market attention of gold mining stocks, attracting more institutional investors to enter and further pushing up stock prices.
It should be noted that the allocation of gold mining stocks also faces certain risks, such as gold price fluctuations, geopolitical risks, and rising enterprise production costs. However, overall, the allocation opportunities for gold mining stocks under the trend of global central bank gold purchases outweigh the risks. Investors can focus on leading enterprises in Chinese-listed gold mining stocks, such as Shandong Gold, Zhaojin Mining, and Zijin Mining, which have stable production growth and strong profitability and can gain greater benefits during the rise in gold prices.
Conclusion
Global central bank gold purchases broke another record in 2026, with Asian countries becoming the core force leading the wave of reserve diversification. This trend not only reshaped the supply-demand pattern of the global gold market but also provided strong support for the valuation repair of gold mining stocks. As an important part of the Asian gold market, Chinese-listed gold mining stocks benefit from the demand growth and gold price rise brought by global central bank gold purchases, with undervalued areas highlighting allocation value. Looking ahead, the trend of global central bank gold purchases is expected to continue, and the allocation opportunities for gold mining stocks are worth investors' attention.
