AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
Last Saturday, the People’s Bank of China announced a continued expansion of its gold reserves in May—a trend that marks the seventh consecutive month of growth since November last year. According to data released by the central bank and highlighted by Krishan Gopaul, a senior analyst for the World Gold Council in the EMEA region, May saw an increase of nearly 2 tons in gold holdings. These gains bring this year’s net gold purchases to a total of 17 tons, raising the overall reserves to 2,296 tons.
While the physical quantity of gold continued to rise, the valuation of China’s gold reserves as of the end of May stood at approximately USD 241.99 billion—down slightly from April’s figure of USD 243.59 billion. This dip partly reflects the impact of April’s historic surge in gold prices, which reached over USD 3,500 per ounce, boosting the overall value of prior holdings.
This renewed buying interest follows a hiatus of roughly six months after an impressive 18-month period of accumulation. The central bank resumed its gold purchasing activities in November last year, a strategic move that coincided with heightened global political uncertainty following the election of Donald Trump in the United States.
In parallel with its efforts to bolster its gold reserves, China is also liberalizing its domestic gold market. On May 27, the Shanghai Futures Exchange introduced reforms that now allow foreign investors and brokers to participate directly in the domestic futures market. The new policy—encompassing 34 reform proposals—covers a wide range of instruments, including gold and silver options trading, hedging strategies, and precious metals futures. By enabling overseas participants to enter the market directly and use foreign currencies like the US dollar for margin deposits, the move aims to attract greater international capital and support the internationalization of the renminbi.
This latest initiative is part of a broader strategy to align China’s commodity pricing power with its actual trade dynamics. In a related development, on April 21, the central bank, in conjunction with three other government bodies, announced plans to enhance the international role of the Shanghai Gold Exchange. Proposals include building foreign-delivery warehouses, a step that could eventually position the exchange as a competitor in the global pricing arena alongside established players such as the London Metal Exchange. Although the specific focus of the new measures has not been fully disclosed, the exchange predominantly handles precious metals like gold, silver, and platinum.
Overall, these coordinated moves underscore China’s ongoing commitment to strengthening its financial resilience and expanding its influence over global commodity markets.
