HK Stock Market Move | The gold jewelry stocks continue to rise recently, with the domestic gold jewelry price returning to 1,300 yuan. Institutions are optimistic that the suppressed consumer demand will gradually be released.

Gold jewelry stocks continue their recent upward trend. As of the time of publication, LAOPU GOLD (06181) has risen by 8.07%, reaching HKD 380.4; CHOW SANG SANG (00116) has increased by 6.61%, at HKD 12.91; CHOW TAI FOOK (01929) has grown by 5.16%, to HKD 12.85; and LUK FOOK HOLD (00590) has climbed by 3.16%, to HKD 26.12. On the news front, international gold prices have surged recently. On August 8, many domestic brands saw their gold jewelry prices increase overnight, returning to RMB 1300 per gram. CHOW SANG SANG's 24K gold products are quoted at RMB 1315 per gram, CHOW TAI FOOK at RMB 1308 per gram, and Lao Miao Gold at RMB 1310 per gram. According to a report by CCTV Finance, on August 6, the wholesale price of 24K gold (999 purity) in Shenzhen's Shui Bei market reached RMB 1100 per gram, rising nearly RMB 50 in just two days. Huaxi issued a research report stating that the stabilization and rebound of gold prices are expected to gradually improve the fundamentals and valuations of the gold jewelry sector: The drastic fluctuations in gold prices in the first half of the year resulted in domestic gold jewelry demand of only 50 tons in Q2. Consumers' "buy high, not low" mentality suppressed terminal sales. The related leading companies faced varying degrees of terminal demand pressure in Q2. However, with the rebound and stabilization of gold prices, we anticipate that the previously suppressed consumer demand is likely to gradually be released. We are optimistic about the leading companies' performance stabilizing and recovering in the second half of the year and recommend paying close attention to the stock price recovery of leading companies.