Shares in China's Zijin Gold International surged more than 60 percent on its debut in Hong Kong on Tuesday after raising more than US$3 billion in one of the world's biggest initial public offerings this year.

The blockbuster opening comes as gold prices continue to hit record highs amid surging demand for the safe-haven asset to head off broader market volatility and expected US interest rate cuts.

The prospect of a US government shutdown and expectations has added to the upward surge for the precious metal, which hit a peak of $3,867.89 Tuesday.

Analysts say it could soon hit $4,000, having piled on almost 50 percent since the turn of the year.

Zijin Gold -- a unit of Zijin Mining, China's biggest miner -- rocketed 67 percent to a peak of HK$120, valuing it at around HK$300 billion (US$38.6 billion).

The company is one of the world's fastest-growing gold producers, with interests in eight mines located in regions across Central Asia, South America, Oceania and Africa.

It said it has extensive experience in global mergers and acquisitions across mine assets.

"We have strong cost management capability, with several of our mines turning profitable shortly after our acquisitions," the firm added.

Proceeds from the IPO will be used to settle the acquisition of a gold mine in Kazakhstan, as well as for upgrading and constructing existing mines over the next five years, the company said in its prospectus.

Global demand for gold is expected to grow because of increased interest from central banks looking for value preservation and risk diversification, according to consultancy Frost & Sullivan.

It added that the price of the metal would also be supported by the quality of mines declining and extraction costs increasing.

Hong Kong's financial secretary Paul Chan said Sunday that initial public offerings had raised nearly HK$150 billion so far this year, ranking top globally.

Accountancy firm Deloitte last week said it forecasts Hong Kong will see more than 80 IPOs in 2025, raising up to HK$280 billion.