HK Stock Market Move | Gold jewelry stocks have climbed across the board, with domestic brands collectively raising their gold jewelry prices. Institutions suggest that end-user sales and valuations are expected to improve.

Gold stocks rose across the board. As of the time of writing, CHOW SANG SANG (00116) was up 11.76%, trading at HKD 15.68; LAOPU GOLD (06181) rose by 11.04%, trading at HKD 380.2; LUK FOOK HOLD (00590) increased by 7.52%, trading at HKD 26.3; CHOW TAI FOOK (01929) was up 7.34%, trading at HKD 13.6. On the news front, in the early morning of August 20, international precious metal prices continued to rise, with spot gold prices surpassing USD 4500 per ounce. Domestic brand gold jewelry prices were collectively raised, with Lao Miao gold's 24K jewelry priced at RMB 1355 per gram, a single-day increase of RMB 44; CHOW SANG SANG's 24K jewelry was priced at RMB 1359 per gram, a single-day increase of RMB 46. Huaxi believes that the stabilization and rebound of gold prices is expected to gradually restore the fundamentals and valuation of the gold jewelry sector: The severe fluctuations in gold prices in the first half of the year led to domestic gold jewelry demand of only 50 tons in Q2, with consumers' "buy high, not low" mentality suppressing terminal sales. The terminal demand of related leading companies was suppressed to varying degrees in Q2, but as gold prices rebound and stabilize, we expect the previously suppressed consumer demand to gradually be released. We are optimistic about the recovery of leading companies' performance in the second half of the year and recommend focusing on the price restoration trend of leading stocks.