Laopu Gold Co. Co‑ordinates a Gold‑Jewellery Surge While Wall‑Street Bullies Remain Uncertain
Laopu Gold Co. Ltd. has surged past its own expectations, turning a modest Hong Kong‑listed player into a beacon for high‑end gold jewellery in China. The company’s first‑half revenue jumped 250 % year‑on‑year to 12.4 billion yuan—a figure that dwarfs the 168 % growth recorded in 2024—while the stock, trading at 678.5 HKD on 2 Dec 2025, sits comfortably above its 52‑week low of 188.8 HKD yet still far from the 1108 HKD peak of 7 July.
Investor Fever Ignites Around Laopu
The headline‑grabbing event that sparked this frenzy is not Laopu itself, but the ripple effect it has created across China’s luxury‑gold sector. Kering Ventures, the start‑up arm of French luxury conglomerate Kering SA, has taken a minority stake in Borland, a Hangzhou‑based jeweller renowned for its “filigree” technique. With an investment exceeding 100 million yuan (US $14 million), Kering signals that it sees a “rapidly growing” niche in the 24‑karat segment that Laopu has already proven profitable.
Simultaneously, Dayone Capital has pledged a comparable sum to Lamchiu, a bespoke piece maker in Lanzhou. The moves by these high‑profile investors underline a belief that Laopu’s success is not a one‑off; rather, it is a harbinger of a broader, buoyant boom in Chinese gold jewellery that can sustain growth even when Western luxury brands stumble.
Laopu’s Numbers Tell a Different Story
Laopu’s revenue performance is striking, but the company’s price‑to‑earnings ratio of 33.06 suggests that the market is already pricing in a substantial premium. Its market cap—over 117 billion HKD—places it squarely in the top tier of Hong Kong listed consumer discretionary stocks. Yet, the 52‑week low of 188.8 HKD shows that volatility remains a real threat.
The company’s success has forced investors to re‑evaluate the attractiveness of traditional luxury brands in China. While Western peers languish, Laopu demonstrates that domestic luxury, anchored in cultural authenticity and local craftsmanship, can deliver superior returns.
Wall‑Street Skepticism Persists
Despite the enthusiasm, major research houses are cautiously optimistic. Nomura’s 2026 outlook for the MSCI Asia ex‑Japan index (MXASJ) projects a 10 % gain, but the brokerage stresses that evidence of AI‑driven productivity gains will be critical to justify continued upside. In their “3‑pillar” strategy, Nomura highlighted strong performers such as Tencent and Alibaba but left open the possibility that smaller, niche players—like Laopu—could outperform if they continue to innovate.
The broader macro‑economic backdrop remains uncertain. Nomura’s reports caution that investors will demand tangible proof that investment in AI and other high‑growth sectors translates into real, measurable returns before the 2026 turning point arrives.
Bottom Line
Laopu Gold Co. Ltd. has carved out a compelling narrative: a home‑grown, culturally resonant gold jewellery brand that is now the focus of both domestic and international investors. While its numbers are impressive, the company’s high valuation and the volatility of the luxury market mean that complacency would be a costly mistake. Investors who see Laopu’s story as a bellwether for China’s premium jewellery market must be prepared for the same volatility that has plagued Western luxury stocks—and perhaps more.
