Changes in Hong Kong stocks | Jewellery stocks are rising across the board, domestic brand jewellery prices are rising, institutions say terminal sales and valuations are expected to pick up

The Zhitong Finance App learned that jewellery stocks were higher across the board. As of press release, Chow Sang Sang Sang (00116) rose 11.76% to HK$15.68; Old Shop Gold (06181) rose 11.04% to HK$380.2; Lukfook Group (00590) rose 7.52% to HK$26.3; and Chow Tai Fook (01929) rose 7.34% to HK$13.6.

According to news, in the early morning of August 20, international precious metals prices continued to rise, and the spot gold price exceeded 4,500 US dollars/ounce. The price of gold jewelry from domestic brands rose collectively. Laomiao Gold and Pure Gold Jewelry reported 1,355 yuan/gram, a sharp increase of 44 yuan in a single day; Zhou Shengsheng Gold Jewelry reported 1,359 yuan/gram, a sharp increase of 46 yuan in a single day.

Huaxi Securities believes that the steady recovery in gold prices is expected to gradually repair the fundamentals and valuation of the gold jewelry sector: the sharp fluctuation in gold prices in the first half of the year led to only 50 tons of domestic gold jewellery demand in Q2. Consumer “buy up or down” mentality suppressed terminal sales. Q2 terminal demand from related leading companies was suppressed to varying degrees, but as the rebound in gold prices stabilized, we expect consumer demand that was suppressed earlier to gradually be released. We are optimistic about the steady recovery in leading companies' performance in the second half of the year.