HK Stock Market Move | LAOPU GOLD (06181) plunges more than 7% with the introduction of new gold tax policies, institutions say speculative gold trading activities are expected to decrease.

LAOPU GOLD (06181) plunged more than 7%, falling 7.3% to 634 Hong Kong dollars with a turnover of 2.35 billion Hong Kong dollars. On the news front, the latest data released by the World Gold Council on October 30 showed that gold investment demand surged to 537 tons in the third quarter, an increase of 47% year-on-year. Among them, Chinese investors showed strong purchasing power in the gold bar and coin sectors, buying 74 tons in a single quarter. On November 1, the Ministry of Finance and the State Administration of Taxation issued a notice clarifying the tax policies related to gold. Guosen pointed out that overall, the new gold tax policy clarifies the use of gold raw materials and implements differentiated tax management to guide market participants to reduce speculative behavior on gold, regulate market operations, and promote healthy competition in the industry. China Securities Co., Ltd. released a research report stating that for end consumers, the purchase price of gold jewelry is expected to increase, with the specific increase depending on the extent of cost transfer by gold jewelry companies and will not be affected by buying gold bars from members of the Gold Exchange.