Chow Tai Fook (01929) Becomes a Hot Hong Kong Stock: Analysis of Dual Drivers from Rising Gold Prices and Earnings Expectations

This analysis is based on information from Tushare dc_hot (East Money App Hong Kong Stock Popularity Ranking). Chow Tai Fook Jewellery Group (01929) is a well-known jewelry retail enterprise listed on the Main Board of the Hong Kong Stock Exchange [0]. Recently, the company has become a popular stock in the Hong Kong market due to factors such as record-high international gold prices, upcoming 2025 fiscal year earnings expectations to be released on November 25, rotation in the Hong Kong stock consumer sector, and continuous inflows of southbound funds [0][2][4].

Chow Tai Fook was founded in 1929 and listed on the Main Board of the Hong Kong Stock Exchange in December 2011 [0]. Its main business is retail of gold jewelry, gemstones, platinum and K-gold jewelry, etc. [1]. 2025 marks the company’s 95th anniversary, with a mission of “Leading the jewelry industry, accompanying generations of lives” [0]. Recently, the company leased a large shop of about 10,000 square feet in Tsim Sha Tsui’s New Port Centre as a flagship store, with a monthly rent of about HK$2 million, setting the largest single-shop leasing transaction in the district in the past two years [3].

The company’s stock price has risen significantly from a low of HK$12.849 in July 2025 to a high of HK$16.63 in October [0]. The main driving factors include:

1. Rising Gold Prices
   : Record-high international gold prices directly benefit leading jewelry enterprises, driving a 24.55% growth in investment demand for jewelry [0][6];
2. Earnings Expectations
   : The company will release its financial report on November 25, with positive market expectations [2][4];
3. Market Rotation
   : Funds in Hong Kong stocks are shifting from the technology sector to the consumer sector, and high-quality consumer leaders are favored [0];
4. Southbound Funds
   : Southbound funds continue to flow into Hong Kong stocks, preferring stable consumer targets like Chow Tai Fook [0].

1. Commodity and Retail Linkage
   : Rising gold prices (commodity market) and jewelry retail demand form a positive cycle, and Chow Tai Fook, as an industry leader, benefits significantly [0][6];
2. Clear Short-Term Catalyst
   : The earnings report on November 25 is a key short-term catalyst, and market expectations will strengthen stock price performance [2][4];
3. Expansion Strategy Signal
   : The opening of the Tsim Sha Tsui flagship store reflects the company’s confidence in the recovery of the retail market and helps enhance brand influence [3];
4. Capital Flow Trend
   : Southbound funds and consumer sector rotation jointly drive the stock price, indicating market expectations for consumer recovery [0].

• Sustained high gold prices are expected to further enhance the company’s product premium capacity and sales scale [0][6];
• If earnings exceed expectations, it may trigger a valuation repair of the stock price [2][4];
• Flagship store expansion helps consolidate high-end market share and enhance customer experience [3].

• Gold price volatility risk: A sharp drop in gold prices may suppress investment demand for jewelry [6];
• Uncertainty in retail recovery: Macroeconomic factors may affect consumer willingness [0];
• High rent costs: The high monthly rent of the flagship store may put pressure on short-term profits [3].

Chow Tai Fook (01929) is a leading jewelry retail enterprise in the Hong Kong stock market. Its recent popularity stems from multiple factors such as rising gold prices, earnings expectations, market rotation, and southbound funds. The company is actively expanding its business, and in the short term, attention should be paid to the earnings report on November 25 and the trend of gold prices. Investors should make decisions based on the macroeconomic environment and the company’s fundamentals.