From that link...

"China disclosed on Friday a 57 percent increase in its gold reserves from 2009, far less than the market had estimated." [Emphasis added.]

IMO, this has had a knee-jerk reaction on the market. Sellers are missing the fact that China has pretty much freed private markets in gold trading/holding, while also promoting citizens to buy and hold gold. They also have a large black market in this area, so it's pretty much impossible to draw any meaningful conclusion from less than stellar "official" government buying, as compared to the massive unknowns in regards to private purchases. The fact is, private holdings have risen dramatically and may dwarf those of "official" reserves. This should not be overlooked when trying to get a sense of the market there. Besides, encouraging of private holdings could also be a means the government is emplying to manage markets to its own ends.

I remain convinced that China intends to use its official AND PRIVATE gold holdings as part of a plan to supplant the dollar. We already know they use the press to manipulate commodities markets, so they should not be underestimated, nor necessarily believed about "holdings" of any kind.

VP