Gold-related stocks are among the biggest decliners, with Zijin Gold International (02259) falling 7.68% to HK$137, China Gold International (02099) dropping 4.58% to HK$204.2, Zijin Mining (02899) down 3.75% to HK$30.76, and Shandong Gold (01787) slipping 2.40% to HK$18.32.
On the news front, international gold prices have once again fallen into a fluctuating range around US$4,100. In addition, gold companies have been intensively releasing their third-quarter results. Zijin Gold International announced that profit attributable to owners of the parent for the first three quarters surged 123% year-on-year. Zhaojin Mining reported third-quarter results with operating revenue of 13.51 billion yuan, up 8.69% year-on-year. China National Gold expects net profit for the first three quarters to grow between 50.05% and 57.66%.
China Merchants Securities noted that in the short term, repeated expectations of Federal Reserve tightening are putting pressure on gold prices, but continued gold purchases by global central banks, weakening dollar credit, and safe-haven demand still provide long-term support. If the pace of Federal Reserve tightening slows later, gold prices are expected to stabilize and rebound, and A/H gold stock valuations have room for recovery after their decline.
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