Analysis of the Reasons Why Chow Tai Fook (01929.HK) Became a Popular Stock

1. Gold Price Driver
   : The gold market performed strongly in 2025, with spot gold prices approaching $4,480 per ounce, an increase of about 60% from the beginning of the year, marking the best annual performance since 1979 [2][3][4]. This rise was mainly driven by factors such as expectations of Fed rate cuts, geopolitical risks, and increased central bank gold purchase demand [2][3]. As a leading global gold jewelry retailer, Chow Tai Fook directly benefits from the product value increase and overall industry growth brought by rising gold prices.
2. China Market Demand Support
   : As a key global gold consumer market, China’s demand remains strong. The People’s Bank of China continued its gold purchase trend [5], and net gold imports through Hong Kong in November 2025 increased more than double compared to October [6]. Rooted in the Chinese market, Chow Tai Fook will directly share the dividends of domestic gold demand growth.
3. Performance Expectation Push
   : Due to the Hong Kong stock market closure on January 1, 2026, investors could not trade in real-time, so market attention shifted to performance expectations. Considering the sharp rise in gold prices at the end of 2025 and strong Chinese gold demand, investors are optimistic about Chow Tai Fook’s Q4 2025 performance, pushing it to become a popular focus.

• Gold prices are highly correlated with the performance of gold jewelry retail enterprises; a long-term upward cycle will continue to benefit industry leaders
• The structural growth of China’s gold demand provides a stable market foundation for Chow Tai Fook
• During Hong Kong stock market closures, investors tend to focus more on targets with clear performance-driven logic

• Opportunities
  : The trend of rising gold prices is expected to continue; China’s market demand is growing steadily, and Chow Tai Fook, as an industry leader, has strong profit elasticity
• Risks
  : If gold prices experience a sharp correction, it may affect investor sentiment and the company’s performance; intensified market competition may compress profit margins

Chow Tai Fook (01929.HK) becoming a popular stock is the result of multiple factors, including the sharp rise in gold prices in 2025, strong growth in China’s gold demand, and investors’ optimistic expectations for its Q4 performance. Investors need to pay attention to the impact of gold price trends and changes in China’s market demand on the company’s performance.