The Hong Kong Special Administrative Region’s imports of gold surged to the most since late-2014 in June, driven by preparations for the city’s recently-launched clearing system as well as solid demand from the Chinese mainland, according to Bloomberg.

Bullion inflows surged to more than 130 tons, according to the HKSAR’s customs authority. Net imports, which indicate how much of the precious metal is staying within Hong Kong, were at their highest since December 2023.

Hong Kong began trial operations earlier this month for a clearing mechanism aimed at boosting the city’s role in global trading and pricing of bullion. Ahead of that, banks had to build up inventories of large gold bars to allow physical delivery into the system.

But part of the increase was also likely driven by appetite for bullion over the border in the mainland, according to Bloomberg.

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The city functions as a key transit point for gold to be processed or traded before being re-exported, and the mainland accounts for the bulk of outbound volumes.

The mainland’s gold imports hit a two-year high last month, as cheaper prices and a stronger yuan kept investors interested, while banks were motivated to use up import quotas and stock up on bullion to meet retail commitments, Bloomberg added.