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Impact of New Gold Tax Policy: A new gold tax policy in China has led to significant declines in gold jewelry stocks, with LAOPU GOLD and CHOW TAI FOOK experiencing drops of over 7% following the announcement.

Details of the Tax Policy: The policy exempts "standard gold" traded on specific exchanges from VAT for on-exchange transactions, but imposes different taxes for physical deliveries based on their intended use, effective from November 1, 2025, to December 31, 2027.

Market Reactions: Spot gold prices fell below USD 4,000 per ounce amid reduced expectations for a Federal Reserve rate cut, contributing to a lackluster performance among gold miners and related stocks.

Short Selling Trends: Several gold mining stocks, including CHINAGOLDINTL and ZIJIN MINING, saw notable short selling activity, reflecting investor skepticism about the sector's performance in light of the new tax policy.

Hong Kong Stock Market Performance: The Hong Kong bourse opened significantly higher, gaining 637 points (2.5%) to reach 25,884, with a slight decline noted in early trading, currently at 25,874 with a turnover of HKD138.135 billion.

Gold and Jewelry Stocks Decline: Major jewelry stocks and gold miners experienced declines, with LAOPU GOLD dropping 6.22% and other companies like LUK FOOK HOLD and CHOW TAI FOOK also seeing losses, attributed to a decrease in spot gold prices from recent highs.

Zijin Mining's Financial Results: Zijin Mining reported a 57% year-on-year increase in net profit for Q3, meeting expectations and prompting Goldman Sachs to maintain a Buy rating while raising the target price for its H shares.

Short Selling Activity: Several gold-related stocks faced significant short selling, with ratios indicating high levels of investor skepticism, particularly for companies like SD GOLD and CHIFENG GOLD, which saw declines of 4.5% to 5.8%.