China gold imports from HK slow China's gold imports via Hong Kong hit 32.9 tonnes in January, up four times from the previous year, but down 15 per cent from the previous month. The country is set to soon overtake India as the world's biggest consumer of bullion as the Chinese enthusiastically invest their savings in gold bars and jewellery. China imported a record 428 tonnes of gold via Hong Kong last year - three times the previous year's imports - as savers turned to gold to hedge against inflation and because of the absence of other investment outlets. In January, however, China's gold purchases through Hong Kong were the lowest in seven-months due to the destocking of inventories built up in the autumn, as well as the traditional holiday lull. The Hong Kong data, reported monthly by the Hong Kong Census and Statistics Department, reflects only part of China's total gold imports but is considered a rough proxy for total buying. China does not disclose its gold imports. Analysts said the January drop reflected normal seasonal fluctuation after exceptionally high imports through Hong Kong last autumn, peaking at 103 tonnes in November. Albert Cheng, managing director for the Far East for the World Gold Council, an industry lobby group, said that physical demand for gold jewellery and bars in China had been very strong in January and February because of new year and Valentine's day purchases. "Retailers in Beijing and Shanghai have been telling us that January and February sales were fantastic, and completely cleared out the inventory they had built up," said Mr Cheng. He added, however, that retail sales were likely to slow in March and the second quarter of this year compared with the new year holiday season. Gold demand in China reached 769.8 tonnes last year, according to the World Gold Council, up 20 per cent from the previous year. The greatest demand growth was in gold bars and coins, which saw demand increase 38 per cent last year, although demand fell in the fourth quarter of last year compared with the year before as inflation fears eased. Analysts have suggested that gold buying by China's official sector may also have been driving the strong imports last year, though China does not regularly disclose its gold holdings. "We have a bullish outlook for Chinese gold demand this year," said Nikos Kavalis, analyst at RBS. But he added that the recent high prices of gold had "quieted" the market somewhat.