FINANCE

Gold’s Slide Sends China’s Luxury Jewelers Tumbling

Published: Jul. 2, 2026 4:42 a.m. GMT+8

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Customers line up outside a Laopu Gold store at Deji Plaza in Nanjing, Jiangsu province, on Feb. 27, 2026. Photo: VCG

Shares of Chinese luxury jeweler Laopu Gold Co. Ltd. have fallen nearly 70% from their all-time high, erasing about HK$120 billion ($15.3 billion) in market value as global bullion prices retreat from record levels.

The selloff highlights the extent to which China’s premium jewelry brands have benefited from the gold boom — and tests whether their luxury positioning can support rich valuations when the underlying commodity turns lower.

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Laopu Gold shares fell nearly 70% from all-time high, erasing HK$120 billion as gold dropped from $5,500 to $4,020 an ounce.
Other Chinese jewelers like Chow Tai Fook and Lao Feng Xiang also declined, though less severely.
Despite the downturn, brokerages remain bullish on Laopu Gold's brand strength, with P/E ratio falling to 11 times.

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Who’s Who

Laopu Gold Co. Ltd.: Laopu Gold Co. Ltd. (老铺黄金股份有限公司), a Chinese luxury jeweler, saw shares fall nearly 70% from their all-time high, erasing about HK$120 billion in market value. The stock closed at HK$346 on Tuesday, down nearly 60% from its 2026 peak. Despite the downturn, brokerages remain upbeat on its brand strength.

Chow Tai Fook Jewellery Group Ltd.: Chow Tai Fook Jewellery Group Ltd. (周大福珠宝集团有限公司) is a Hong Kong-listed Chinese jeweler. As of June 30, 2025, its stock closed at HK$10.90, nearly 30% below its 2026 high, reflecting sector-wide pressure from declining gold prices.

Lao Feng Xiang Co. Ltd.: Lao Feng Xiang Co. Ltd., a Shanghai-listed Chinese jeweler, has dropped 40% from its peak, closing at 32.6 yuan ($4.8) on July 1. The decline reflects broader pressure on Chinese luxury jewelry stocks amid falling gold prices from record levels.

China National Gold Group Gold Jewellery Co. Ltd.: China National Gold Group Gold Jewellery Co. Ltd. is a Shanghai-listed Chinese jeweler. According to the article, its stock price has roughly halved to 6.9 yuan, reflecting the downturn in the gold sector as bullion prices retreat from record levels.

China Securities Co. Ltd.: China Securities Co. Ltd. is a brokerage that remains upbeat on Laopu Gold, noting the company has spent the past month testing new pricing and promotional strategies, including offering a pink sapphire necklace at a 20% discount, which generated strong sales.

JPMorgan Chase & Co.: JPMorgan Chase & Co. is among global banks bullish on Laopu Gold, arguing investors undervalue its brand strength and affluent customer base. The bank set a mid-June target price of HK$1,296, partly based on expectations gold could reach $6,000 per ounce by year-end.

Nomura Holdings Inc.: Nomura Holdings Inc. is a global bank mentioned in the article as one of the financial institutions arguing that investors are undervaluing Laopu Gold’s brand strength and affluent customer base, despite the jeweler's sharp stock decline amid falling gold prices.

UBS Group AG: UBS Group AG is among global banks arguing investors undervalue Laopu Gold's brand strength and affluent customer base, despite its shares falling nearly 70% from highs as gold prices retreat.

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