By Jiahui Huang

Shares of Chinese jewelry company Laopu Gold hit a record high in Hong Kong, continuing a rally that has seen the stock more than tripled so far this year.

Laopu stock crossed the key HK$1,000 level on Monday morning, defying expectations that it would come under pressure after the expiration of an initial public offering lockup period.

By midday, the company's shares were up 16% at HK$1,019, making it the most expensive stock on the Hong Kong exchange.

Laopu has been drawing strong investor interest, benefiting from high gold prices and a wave of Chinese consumer demand for luxury goods. Gold has been in high demand over the past months, fueled by central bank buying and investors looking for safe havens amid market volatility.

The company now boasts a market capitalization of 176.0 billion Hong Kong dollars, equivalent to US$22.42 billion, and above industry heavyweight Chow Tai Fook Jewellery Group.

Laopu on Saturday opened a new store in Shanghai to long lines of customers, local media reported.

The premium location shows the company's enhanced brand recognition, Nomura analysts said. In a note, they highlighted Laopu's progress in store openings this year, including its first overseas boutique in Singapore which has pulled in high foot traffic.

Laopu's revenue and earnings growth have outpaced that of its competitors' in recent years. In 2024, revenue more than doubled, helping net profit to more than triple.

In the short term, there could be some share-price volatility as some employee and pre-IPO investors book profits, Nomura said.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

June 30, 2025 01:16 ET (05:16 GMT)

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