China's gold demand was 867 tons in 2015, down 7 percent from a year earlier. The downward trend continued in the first three months of this year. Consumption came in at about 318 tons in the first quarter, off nearly 4 percent from the same period in 2015.

But it is notable that the sale of gold bars and coins soared in the first quarter from a year ago, compared to major drops in gold jewelry and industrial gold. Gold prices also rebounded in the first three months of this year. 

As prices rebounded, China's gold production reported double-digit growth during this year's first quarter. Chinese gold producers are active in global mergers and acquisitions as well. For example, the China Gold Group recently purchased an 82 percent share in a mine owned by Canada's Eldorado Gold Corporation.