Damo believes that the resumption of mainland visitors to Hong Kong during the Lunar New Year will have a positive effect on Hong Kong's jewellery retail sales, particularly gold sales.
The Zhitong Finance App learned that Morgan Stanley released a research report saying that, according to official figures, mainland jewelry sales increased by more than 10% year-on-year during the Lunar New Year period. It is believed that Chow Tai ?$#@$ (01929) will benefit, as the mainland China and Hong Kong markets account for 84% and 16% of the company's retail sales, respectively. The bank gave a target price of HK$13.5 and a “in sync with the market” rating. The number of mainland visitors to Hong Kong in the Lunar New Year has recovered to a level of 76% in 2019; the bank believes it will have a positive effect on jewellery retail sales in Hong Kong, particularly gold sales.