Customer Concerns Addressed: CHOW SANG SANG responded to complaints from mainland Chinese consumers regarding their pure gold pendants allegedly containing other metals, stating they value customer feedback and are reviewing the testing reports.

Testing Results Confirm Quality: The company conducted tests at the National Gemstone Testing Center, which confirmed that the gold content in the pendants is 99.99% and 99.98%, affirming compliance with national standards.

Cooperation with Authorities: CHOW SANG SANG is fully cooperating with relevant authorities regarding the investigation and has committed to announcing any related developments promptly.

Market Context: The news comes amid uncertain gold prices, with analysts predicting potential volatility in the market, particularly for silver.

Gold and Silver Prices Surge: Gold futures in New York reached a historic high of USD5,080.1 per ounce, while silver futures peaked at USD107.925, reflecting significant increases in precious metal prices.

Jewelry Stocks Performance: Hong Kong-listed jewelry stocks, particularly LAOPU GOLD, experienced substantial gains, with expectations of strong sales during the Spring Festival due to high gold prices and promotional activities.

Gold Miners Thrive: Gold mining companies like ZIJIN MINING and ZHAOJIN MINING saw their stock prices rise significantly, benefiting from the increasing gold prices and high trading volumes.

Short Selling Activity: Various stocks in the jewelry and mining sectors showed notable short selling ratios, indicating a mix of investor sentiment and market speculation amidst the rising prices of gold and silver.

Gold and Silver Prices Surge: Gold prices are nearing US$5,000 per ounce, with spot gold last quoted at US$4,944.08, while spot silver reached US$98.64 per ounce, reflecting significant increases in both metals.

Impact on Jewelry Stocks: The rise in gold prices has led to increased market expectations for gold product prices, positively affecting jewelry stocks in Hong Kong, particularly LAOPU GOLD, which saw a notable increase in its share price.

Gold Jewelry Price Surge: Gold jewelry prices from domestic brands in Mainland China have risen significantly, with most brands exceeding RMB1,300 per gram, marking a new record for single item prices.

Leading Brand Prices: CHOW TAI FOOK has set its price at RMB1,313 per gram, while Lukfook Jewelry and CHOW SANG SANG have also increased their prices to RMB1,311 and RMB1,309 per gram, respectively.

Market Reactions: The increase in gold prices comes amid concerns over excessive sector decline following the announcement of new VAT regulations on gold by the Chinese government.

Short Selling Data: As of November 12, short selling data indicates significant activity in the market, with CHOW TAI FOOK experiencing short selling of $85.02 million and a ratio of 51.611%.

Market Downtrend: The HSI fell 161 points (0.6%) to 25,997, dropping below the 26,000 mark, with significant declines in consumer and gold jewelry stocks.

Consumer Stocks Performance: POP MART and MIXUE GROUP saw notable declines, with POP MART hitting a five-month low, while short selling activity was high for both companies.

Gold Jewelry Sector Impact: The cancellation of tax incentives for gold purchases in China led to a downturn in gold jewelry stocks, with several companies, including LAOPU GOLD and CHOW TAI FOOK, experiencing significant losses.

Gold Miners Struggles: International gold prices continued to decline, negatively affecting gold mining stocks like ZIJIN MINING, which was the worst performer among blue chips, alongside other mining companies facing substantial drops.