# Chinese Banking

Glittering Contradictions: China’s Gold Rush Hits a Retail Chill as Central Banks Pivot

Gold prices have seen a sharp correction in mid-2026, leading to a retail slump in China despite heavy promotions from jewelry brands. While commercial banks hike margins to manage volatility, the Chinese central bank continues to increase its reserves, highlighting a strategic shift toward gold as a primary reserve asset over U.S. Treasuries.