Adjustment of gold trading tax policy causes LUK FOOK HOLD to drop nearly 9%

On November 1st, the Ministry of Finance and the State Administration of Taxation issued an announcement on tax policies related to gold, clarifying the tax policies for gold transactions. Due to the relevant regulations potentially reducing the attractiveness of investing in physical gold through non-exchange channels, ordinary investors may prefer exchange products such as gold ETFs that offer tax benefits and investment convenience. In today's early trading, gold retail stocks experienced significant declines, with Hong Kong-listed LUK FOOK HOLD, Chow Tai Fook, and Lau Po Gold all dropping more than 7%, with LUK FOOK HOLD experiencing the largest decline, reaching 8.8% at one point. Industry insiders stated that the aforementioned policy is a further improvement of the existing gold market policies, which can better distinguish between the commodity and financial attributes of gold; and this policy adjustment only made appropriate changes to the value-added tax policy for gold purchased on exchanges, with no changes to the gold sales policy outside of exchanges. Overall, China's tax policy support for the gold industry is stronger than that of major international gold markets