---
title: "The mainland implements a new gold tax policy starting today, jewelry stocks plummet, LAOPU GOLD, CHOW TAI FOOK, and LUK FOOK all drop over 7%"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/263929228.md"
description: "Mainland China has implemented a new gold tax policy starting today, leading to a significant drop in gold jewelry stocks. LAOPU GOLD fell by 7.74%, CHOW TAI FOOK fell by 7.1%, and LIUFU fell by 7.32%. The new policy stipulates that standard gold trading on the exchange is exempt from value-added tax, but physical delivery will be subject to different taxes based on usage. The increase in costs for consumers purchasing jewelry has become an inevitable trend"
datetime: "2025-11-03T01:49:01.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/263929228.md)
  - [en](https://longbridge.com/en/news/263929228.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/263929228.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/263929228.md) | [繁體中文](https://longbridge.com/zh-HK/news/263929228.md)


# The mainland implements a new gold tax policy starting today, jewelry stocks plummet, LAOPU GOLD, CHOW TAI FOOK, and LUK FOOK all drop over 7%

Hong Kong stocks opened higher this morning (3rd), with the Hang Seng Index opening up 92 points or 0.4%, reporting 25,999 points. After a narrow range of fluctuations in the early stage, it was last reported at 26,005, up 98 points or 0.4%, with a turnover of HKD 54.924 billion.

Starting today, the mainland has implemented a new gold tax policy, significantly pressuring gold jewelry stocks this morning. "New consumption stock" Laopu Gold (06181.HK) opened down 4.7% and hit a low of 620 HKD, the lowest in over seven months since the end of March; it was last reported at 631.5 HKD, down 7.74%, with a turnover of HKD 443 million. Chow Tai Fook (01929.HK) is currently reported at 14.14 HKD, down 7.1%, with a turnover of HKD 374 million. Luk Fook (00590.HK) opened flat but then slid sharply, now reported at 23.06 HKD, down 7.32%, with a turnover of HKD 28.8034 million. Chow Sang Sang (00116.HK) is currently reported at 13.03 HKD, down 6.46%, with a turnover of HKD 13.6447 million. Saturday Fook (06168.HK) also fell about 3%.

The Ministry of Finance and the State Administration of Taxation jointly issued an announcement regarding gold-related tax policies, stating that starting today, a new gold tax policy will be implemented, clarifying that "standard gold" traded through the Shanghai Gold Exchange and the Shanghai Futures Exchange will be exempt from value-added tax (VAT) for on-site transactions. Once physical delivery occurs, different taxes will be levied based on usage. The new policy will be implemented from November 1, 2025, until December 31, 2027. For non-investment purposes, the exchange will exempt VAT and issue ordinary invoices to the buying member units based on the actual transaction price. For buying member units that are general VAT taxpayers, the input tax amount will be calculated based on the amount indicated on the ordinary invoice and a 6% deduction rate.

According to the domestic media "First Financial," Song Jiangzhen, director of the Market Research Center at the Guangdong Southern Gold Market Research Institute, stated that the increase in consumer costs for purchasing jewelry is an inevitable trend; non-investment types can obtain a 6% ordinary invoice, which can be deducted. Then, issuing a special invoice, the normal 13% VAT will be paid, but 6% can be deducted, so the actual payment is 7%. However, previously, the 13% tax on raw materials could be deducted. He analyzed that processed gold, including jewelry, ornaments, and gold used in industrial electronics, will incur an additional 7% tax.

Although the impact of diamond and environmental tax policy adjustments on the prices of gold-inlaid diamond products has not yet been reflected, the impact of the gold tax policy on the industry chain is already foreseeable. Song Jiangzhen stated that the biggest impact of this gold tax policy is still on the B-end of the entire gold industry chain, which includes material suppliers, wholesalers, and gold jewelry retail stores.

Market expectations for a rate cut by the Federal Reserve in December have cooled, with spot gold prices falling below USD 4,000, last reported at USD 3,992 per ounce, and gold mining stocks are weak. China Gold International (02099.HK) is currently reported at 124.5 HKD, down 5.25%, with a turnover of HKD 69.8472 million. Shandong Gold (01787.HK) fell 3.4%, while Zijin (02899.HK), Zhaojin (01818.HK), Zijin Gold International (02259.HK), Tongguan Gold (00340.HK), and Wanguo Gold Group (03939.HK) fell between 2.2% and 2.9% Lingbao Gold (03330.HK) fell 1%

### Related Stocks

- [CHOW TAI FOOK (01929.HK)](https://longbridge.com/en/quote/01929.HK.md)
- [LAOPU GOLD (06181.HK)](https://longbridge.com/en/quote/06181.HK.md)

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