---
title: "In \"The Big Banks,\" China International Capital Corporation: After China announced the new regulations on gold value-added tax, the industry's decline was too large. We continue to be optimistic about CHOW TAI FOOK and LUK FOOK HOLD"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/265066235.md"
description: "BOC International released a research report indicating that after the Chinese government announced new regulations on gold value-added tax, the stock prices of gold and jewelry retailers significantly adjusted. Although the policy is expected to have a mild negative impact on industry profitability, the extent of the stock price adjustment is excessive, mainly due to the decline in gold prices and profit-taking during the U.S. government shutdown. The firm is optimistic about CHOW TAI FOOK and LUK FOOK HOLD, maintaining a \"Buy\" rating with target prices of 17.8 yuan and 23.8 yuan, respectively, and expects the mid-term performance of both companies to alleviate investor concerns"
datetime: "2025-11-10T04:03:50.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/265066235.md)
  - [en](https://longbridge.com/en/news/265066235.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/265066235.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/265066235.md) | [繁體中文](https://longbridge.com/zh-HK/news/265066235.md)


# In "The Big Banks," China International Capital Corporation: After China announced the new regulations on gold value-added tax, the industry's decline was too large. We continue to be optimistic about CHOW TAI FOOK and LUK FOOK HOLD

Bank of China International published a research report indicating that after the Chinese government announced new regulations on the value-added tax for gold, the stock prices of gold and jewelry retailers significantly corrected. Although the bank expects the policy to have a mild negative impact on industry profits, with earnings per share likely to see a mid-single-digit decline, it believes that the current stock price correction is excessive and mainly due to the combined effects of other factors, such as falling gold prices and profit-taking during the U.S. government shutdown.

The bank remains optimistic about CHOW TAI FOOK (01929.HK) and LUK FOOK JEWELRY (00590.HK), both rated "Buy," with target prices of HKD 17.8 and HKD 23.8, respectively, and expects that the upcoming interim results from both companies will help alleviate investor concerns

### Related Stocks

- [CHOW TAI FOOK (01929.HK)](https://longbridge.com/en/quote/01929.HK.md)
- [LUK FOOK HOLD (00590.HK)](https://longbridge.com/en/quote/00590.HK.md)

## Related News & Research

- [Laopu Gold Co. Ltd. Class H (6181) Receives a Buy from CGS International](https://longbridge.com/en/news/281138022.md)
- [Zhongtai Securities Sticks to Its Buy Rating for Wasion Holdings Limited (3393)](https://longbridge.com/en/news/281141455.md)
- [CICC Sticks to Its Buy Rating for CIMC Enric Holdings (CIMEF)](https://longbridge.com/en/news/281132485.md)
- [CLSA Sticks to Their Buy Rating for China Merchants Bank Co (CIHHF)](https://longbridge.com/en/news/281093865.md)
- [Guotai Haitong Remains a Buy on Jinxin Fertility Group Ltd. (1951)](https://longbridge.com/en/news/281098586.md)