Hong Kong-listed jewelry stocks extend recent gains as domestic gold prices climb back above 1,300 yuan per gram; analysts expect pent-up consumer demand to gradually unlock

LAOPU GOLD (06181) shares jumped 8.07% to HKD 380.4, while CHOW SANG SANG (00116) advanced 6.61% to HKD 12.91.

CHOW TAI FOOK (01929) shares rose 5.16% to HKD 12.85, and LUK FOOK HOLD (00590) traded 3.16% higher at HKD 26.12 as the sector continued its upward momentum.

The rally follows a sharp rebound in international gold prices. On August 8, multiple domestic jewelry brands raised their gold prices overnight, pushing retail prices back above the 1,300 yuan per gram threshold. CHOW SANG SANG listed its pure gold jewelry at 1,315 yuan per gram, CHOW TAI FOOK quoted 1,308 yuan per gram, and Laomiao Gold set its price at 1,310 yuan per gram.

According to CCTV Financial reports, wholesale prices at Shenzhen's Shuibei gold market reached 1,100 yuan per gram on August 6 for 999-purity gold, surging nearly 50 yuan in just two days.

Huaxi Securities noted in a research report that the stabilization and rebound of gold prices is expected to gradually improve fundamentals and valuations in the gold jewelry sector. The first half of the year saw extreme price volatility, which reduced China's Q2 gold jewelry demand to just 50 tonnes. Consumer psychology of "buying on uptrends, not downturns" suppressed terminal sales, and leading companies experienced varying degrees of demand pressure in Q2. However, as gold prices stabilize and recover, analysts expect previously suppressed consumer demand to be gradually released. The brokerage remains optimistic about leading companies' performance recovery in the second half of the year and advises focusing on valuation repair opportunities for top-tier stocks.