Understanding the Market | Gold and Jewelry Stocks Continue to Decline, LAOPU GOLD Drops Over 5% as Jewelers Confirm Price Increase After Rising VAT Costs
Gold and jewelry stocks continued to decline yesterday. As of the time of writing, LAOPU GOLD fell 4.09% to HKD 609.5; CHOW TAI FOOK dropped 3.09% to HKD 13.47; and CHOW SANG SANG decreased 3.06% to HKD 12.68. On the news front, the Ministry of Finance and the State Administration of Taxation of China announced the cancellation of the tax incentives for gold purchases originally scheduled to be applicable from November 1, 2025, to December 31, 2027. Affected by the new policy, several gold and jewelry merchants have raised prices. CHOW TAI FOOK stated that the recently released tax policy related to gold has brought additional costs to gold procurement and production. Therefore, CHOW TAI FOOK Jewelry will adjust prices for some gold products starting from November 3. Citigroup released a research report stating that the new gold tax regulations will reduce the VAT deduction rate for jewelers purchasing gold from 13% to 6%. In the most extreme case, the cost of gold procurement may rise by 7%, and the industry may raise prices overall to pass on the pressure. Morgan Stanley further analyzed that brand owners are likely to pass the costs onto end consumers by raising retail prices, with demand for weight-based gold jewelry being the most impacted
According to the Zhitong Finance APP, gold and jewelry stocks continued to decline yesterday. As of the time of writing, LAOPU GOLD (06181) fell by 4.09%, trading at HKD 609.5; CHOW TAI FOOK (01929) dropped by 3.09%, trading at HKD 13.47; and CHOW SANG SANG (00116) decreased by 3.06%, trading at HKD 12.68.
On the news front, the Ministry of Finance and the State Administration of Taxation of China announced the cancellation of the tax incentives for gold purchases originally scheduled to be applicable from November 1, 2025, to December 31, 2027. Affected by the new policy, several gold and jewelry retailers have raised prices. CHOW TAI FOOK stated that the recently released tax policy related to gold has brought additional costs to gold procurement and production. Therefore, CHOW TAI FOOK Jewelry will adjust the prices of some gold products starting from November 3.
Citigroup released a research report stating that the new gold tax regulations will reduce the VAT deduction rate for jewelers purchasing gold from 13% to 6%. In the most extreme case, the cost of gold procurement may rise by 7%, and the industry may raise prices overall to pass on the pressure. Morgan Stanley further analyzed that brand owners are likely to pass on costs to end consumers by increasing retail prices, with the demand for weighted gold jewelry being the most impacted
