KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
Key Takeaways
PBOC Proposal: Draft rule extends gold import permits to 9 months (from 6) and removes usage limits. More ports to be authorised for bullion clearance.
Market Context: Yuan appreciation against the dollar makes gold cheaper for Chinese buyers, boosting import demand.
Sector Impact: Easier rules could benefit LBMA-accredited refiners and support a struggling jewellery sector.
Strategic Goal: Part of Beijing’s broader ambition to strengthen influence over global commodity pricing.
Macro Implications: Could temper yuan’s rise, stimulate domestic gold demand, and enhance China’s role in international bullion markets.
Policy Shift in Detail
The People’s Bank of China (PBOC) is taking steps to smooth frictions in bullion imports by relaxing restrictions on permits and authorising more ports for clearance. While still keeping quotas in place, the new system increases flexibility without fully liberalising gold flows.
Currency & Trade Link
China’s move comes as the yuan has strengthened since April, raising concerns about export competitiveness and deflationary pressure. Looser gold imports could create additional dollar demand, potentially slowing the yuan’s ascent.
Industry Impact
Refiners: LBMA-accredited firms that import, refine, and re-export bullion stand to benefit from reduced administrative hurdles.
Jewellery Sector: Struggling domestic players could gain capacity to meet overseas demand, with cheaper sourcing improving competitiveness.
Global Prices: China remains a key driver of gold demand. Streamlined imports may reinforce its role in setting global bullion dynamics.
Strategic Perspective
Analysts stress this is a “small but meaningful step” toward aligning with international practices, but capital controls remain a major barrier to a fully open market. Broader reforms this year — such as allowing insurers to buy bullion and expanding the Shanghai Gold Exchange into Hong Kong — underscore Beijing’s long-term ambition to rival London’s dominance in gold trading.
Investor View
For investors, China’s easing signals continued structural demand support for gold, complementing global safe-haven flows amid fiscal and geopolitical uncertainty. While not a wholesale liberalisation, the shift strengthens the case for gold exposure as both a hedge and a play on China’s evolving commodity strategy.
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