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Fashion Network
5 days ago
- Business
- Fashion Network
Chinese jeweler Laopu Gold becomes Hong Kong's highest-priced stock after 2,300% surge
Chinese heritage jeweler Laopu Gold Co. has emerged as a breakout player in the luxury sector, with its stock price climbing above HK$1,000 ($127) following a 2,300% rally since its June 2024 listing. The surge marks a rare milestone for the Hong Kong market and signals growing investor confidence in a new wave of domestic brands appealing to China's Gen Z consumers. The stock has soared more than 2,300% since its listing in late June 2024, outperforming more than 500 peers in the Hang Seng Composite Index during the period. At HK$1,000 per share on Thursday, it far surpasses the second-most expensive stock in the financial hub: bubble tea maker Mixue Group, which is trading at just above HK$600. While Laopu's sharp rise highlights investor enthusiasm for a new wave of Chinese consumption stocks tailored to Gen Z preferences, its steep price point could pose a barrier to retail participation. With the company's minimum trading unit set at 100 shares, investors must commit at least HK$100,000—the equivalent of $12,750—to gain exposure to the stock. Companies listed in Hong Kong can set their own minimum trading units—known as a 'board lot'—ranging from dozens to thousands of shares. While investors can place orders for odd lots, including a single share through brokerages, these transactions typically take longer to match and can incur higher fees. Bloomberg reported in March that the financial hub's exchange was discussing options to lower the threshold for investors to buy some of the most expensive stocks to boost trading activity. The retail portion of Laopu's initial public offering was nearly 600 times oversubscribed, prompting the company to increase the number of shares allocated to individual investors by six times to 11.2 million. The jewelry maker's remarkable rally will face its first meaningful test as it approaches the first anniversary of its debut on June 27, when a lockup on 121.4 million shares will expire. That's more than double the current number of free-float shares. The stock posted its worst weekly drop since its listing in December last year, just before the expiry of a six-month lockup on 10.8 million shares. Laopu has yet to indicate any plans for a stock split, a common strategy taken by high-flying firms to cheapen the value of each share and make it more affordable. Tencent Holdings Ltd. performed a 5-for-1 split in 2014, shortly after share prices peaked above HK$600. Zai Lab Ltd. divided each share into 10 in 2022, lowering the price to around HK$35.
Fashion Network
5 days ago
- Business
- Fashion Network
Chinese jeweler Laopu Gold becomes Hong Kong's highest-priced stock after 2,300% surge
Chinese heritage jeweler Laopu Gold Co. has emerged as a breakout player in the luxury sector, with its stock price climbing above HK$1,000 ($127) following a 2,300% rally since its June 2024 listing. The surge marks a rare milestone for the Hong Kong market and signals growing investor confidence in a new wave of domestic brands appealing to China's Gen Z consumers. The stock has soared more than 2,300% since its listing in late June 2024, outperforming more than 500 peers in the Hang Seng Composite Index during the period. At HK$1,000 per share on Thursday, it far surpasses the second-most expensive stock in the financial hub: bubble tea maker Mixue Group, which is trading at just above HK$600. While Laopu's sharp rise highlights investor enthusiasm for a new wave of Chinese consumption stocks tailored to Gen Z preferences, its steep price point could pose a barrier to retail participation. With the company's minimum trading unit set at 100 shares, investors must commit at least HK$100,000—the equivalent of $12,750—to gain exposure to the stock. Companies listed in Hong Kong can set their own minimum trading units—known as a 'board lot'—ranging from dozens to thousands of shares. While investors can place orders for odd lots, including a single share through brokerages, these transactions typically take longer to match and can incur higher fees. Bloomberg reported in March that the financial hub's exchange was discussing options to lower the threshold for investors to buy some of the most expensive stocks to boost trading activity. The retail portion of Laopu's initial public offering was nearly 600 times oversubscribed, prompting the company to increase the number of shares allocated to individual investors by six times to 11.2 million. The jewelry maker's remarkable rally will face its first meaningful test as it approaches the first anniversary of its debut on June 27, when a lockup on 121.4 million shares will expire. That's more than double the current number of free-float shares. The stock posted its worst weekly drop since its listing in December last year, just before the expiry of a six-month lockup on 10.8 million shares. Laopu has yet to indicate any plans for a stock split, a common strategy taken by high-flying firms to cheapen the value of each share and make it more affordable. Tencent Holdings Ltd. performed a 5-for-1 split in 2014, shortly after share prices peaked above HK$600. Zai Lab Ltd. divided each share into 10 in 2022, lowering the price to around HK$35.
Business Times
5 days ago
- Business
- Business Times
Laopu Gold's 2,300% rally faces test after stock hits HK$1,000
A BREATHTAKING rally in Laopu Gold is facing a critical test after its stock price hit HK$1,000 (S$164), a rare milestone that may deter retail investors due to the steep price tag. The jewellery maker soared more than 2,300 per cent since its listing in late June 2024 to set a new record earlier on Thursday (Jun 5), emerging as the new face of Chinese luxury and outperforming over 500 peers in the Hang Seng Composite Index. Its share price far surpasses the second-most expensive stock in Hong Kong: bubble tea maker Mixue Group which is trading at around HK$580. While Laopu's ascent underscores market zeal towards China's new consumption stocks catering to Gen Z demand, investors will likely demand more to purchase shares at this level. With a minimum trading unit set at 100 shares by the company, it means a buyer must shell out HK$100,000 – the equivalent of US$12,750 – to gain exposure to Laopu. Share price moves on Thursday illustrate the point. The stock fell as much as 8.5 per cent after reaching HK$1,015 earlier in the session. Peer Chow Tai Fook Jewellery Group slid more than 1 per cent in Hong Kong while Chow Tai Seng Jewellery slumped 8.2 per cent on the mainland. Another crucial test will be a Jun 27 lockup expiry of 121.4 million shares. That's more than double the current number of free-float shares. The stock posted its worst weekly drop since its listing in December last year, just before the expiry of a six-month lockup on 10.8 million shares. 'Laopu is excessively expensive in my view, based on cash flow, even though growth looks promising,' said Yu Dingheng, fund manager at Shenzhen Flying Tiger Investment & Management. 'HK$1,000 is going to be a tough hurdle.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Companies listed in Hong Kong can set their own minimum trading units – known as a 'board lot' – ranging from dozens to thousands of shares. While investors can place orders for odd lots including a single share through brokerages, these transactions typically take longer to match and can incur higher fees. Bloomberg reported in March that the financial hub's exchange was discussing options to lower the threshold for investors to buy some of the most expensive stocks to boost trading activity. The retail portion of Laopu's initial public offering was nearly 600 times oversubscribed, prompting the company to increase the number of shares allocated to individual investors by six times to 11.2 million. Laopu currently trades at nearly 32 times forward earnings, above Chow Tai Fook's ratio at around 16. Laopu has yet to indicate any plans for a stock split, a common strategy taken by high-flying firms to cheapen the value of each share and make it more affordable. Tencent Holdings performed a five-for-one split in 2014, shortly after share prices peaked at above HK$600. Zai Lab divided each share into 10 in 2022, lowering the price to around HK$35. BLOOMBERG
Bloomberg
5 days ago
- Business
- Bloomberg
Laopu Gold Soars 2,300% to Become Hong Kong's Priciest Stock
A breathtaking rally in Laopu Gold Co. has pushed its stock price to above HK$1,000 ($127), a rare milestone that reflects the jewelry maker's emergence as the new face of Chinese luxury. The stock has soared more than 2,300% since its listing in late June 2024, trouncing more than 500 peers in Hang Seng Composite Index during the period. At HK$1,000 per share on Thursday, it far surpasses the second-most expensive stock in the financial hub: bubble tea marker Mixue Group which is trading at just above HK$600.
Mint
22-05-2025
- Business
- Mint
China's Gen Z Stocks Build on Gains as Baiju Makers Stumble
China's so-called new consumer stocks are on a tear. Bubble tea maker Mixue Group jumped as much as 4.7% during intraday trading Thursday, while rival Guming Holdings rose more than 5% at its high. The moves defied a wider lull in Hong Kong's stock market, compounding gains for investors who have bet on Generation Z consumption — an increasingly popular play. Investors are on a feeding frenzy for brands that have appeal to the younger generation, lifting a varied group of shares seen as new consumption plays. That is hurting demand for the shares of companies selling old-fashioned consumer staples, including the makers of hard liquor. The recent gains mean Mixue's market capitalization is now around $27 billion, putting it above that of Luzhou Laojiao Co., one of China's major distillers. The shift followed the bubble tea maker's 170% jump since its initial public offering in February, a move that has helped fuel interest in other listings now in the pipeline. The combined market value of five of the top sellers of boba drinks, including recently-listed companies Auntea Jenny Shanghai Industrial Co. and Chagee Holdings, totaled almost 290 billion yuan as of Wednesday. That is over half the size of Wuliangye Yibin Co., China's second largest distiller and one of the largest stocks onshore. Read: Gen Z's 'Emotional Consumption' Fuels Wild Stock Moves in China Recent government directives reining in the consumption of alcohol at official receptions have dealt a blow to the sector. Luzhou Laojiao's share price has fallen more than 3% since a Sunday notice telling officials to watch their spending on alcohol and cigarettes. Shares of Kweichoi Moutai Co., China's biggest liquor maker, have lost around 2% this week. This article was generated from an automated news agency feed without modifications to text.
