HK Stock Market Move | Gold jewelry stocks are all declining, and domestic gold jewelry prices are falling rapidly. Institutions point to a continuous decline in gold jewelry consumption.

Gold jewelry stocks are falling across the board. As of the time of writing, CHOW TAI FOOK (01929) fell by 4.55% to HK$10.91; LAOPU GOLD (06181) fell by 4.15% to HK$480.2; CHOW SANG SANG (00116) fell by 2.71% to HK$10.41; LUK FOOK HOLD (00590) fell by 1.89% to HK$20.76. On the news front, inflation expectations have forced central banks in many countries to tighten monetary policy, putting continued pressure on international gold and silver prices. On May 28th, a comparison of domestic gold jewelry prices showed that prices from many brands have significantly dropped today, with Chow Tai Seng Jewellery and Guangdong CHJ Industry's gold jewelry prices falling by over 30 yuan per gram, with many prices falling to around 1350 yuan per gram. Huachuang Securities pointed out that the high gold price has led to a structural characteristic in the industry of "reduction in jewelry quantity, increase in investment gold quantity, and growth in retail amount," with industry growth quality lower than the apparent retail sales growth rate. Zheshang also stated that caution should be taken regarding the risks of the gold jewelry sector, as the consumption of gold jewelry continues to decline in a high gold price environment, putting pressure on the profitability of related listed companies.