Mei Ri Jing Ji Xin Wen·2025-11-03 07:08Core Viewpoint - The Hong Kong gold retail brands experienced a significant decline in stock prices, with major players like Chow Tai Fook, Luk Fook, and Lao Pu Gold dropping over 7% as of November 3 [1][2]. Group 1: Market Reaction - Major Hong Kong gold retailers saw stock declines, with Lao Pu Gold down 7.82%, Chow Tai Fook down 7.62%, and Luk Fook down 7.40% [2]. - In the A-share market, the precious metals sector also faced losses, with Hunan Gold down over 4% and several other companies like Xiaocheng Technology and Shanjin International dropping more than 2% [2]. Group 2: Tax Policy Impact - On November 1, the Ministry of Finance and the State Administration of Taxation announced new tax policies regarding gold transactions, which include immediate VAT refunds for investment-grade gold purchased by member units [4][5]. - The new regulations are expected to curb illegal trading and short-term arbitrage, potentially affecting gold prices, but are not anticipated to impact genuine demand in the medium to long term [5]. - The tax policy primarily targets investment-grade gold transactions, leaving the tax treatment of gold jewelry unchanged, thus not affecting ordinary consumers purchasing gold jewelry [5]. Group 3: Price Changes - Following the announcement of the new tax policy, the prices of investment gold bars surged, with many brands either raising prices or removing products from sale [9][22]. - As of November 3, domestic gold jewelry prices have generally exceeded 1250 RMB per gram, with brands like Chow Tai Fook and Luk Fook pricing at 1259 RMB per gram [7]. - The price of investment gold bars has seen significant increases, with reports of prices rising above 1200 RMB per gram shortly after the policy announcement [9][12].