Shares of Laopu Gold tumbled about 9% in Hong Kong.

China's Ministry of Finance (MOF) and the State Administration of Taxation (SAT) jointly issued an announcement regarding the tax policy on gold, declaring the implementation of a new gold tax policy effective immediately. It specified that "standard gold" traded on the Shanghai Gold Exchange and the Shanghai Futures Exchange is exempt from value-added tax (VAT) for on-exchange transactions. However, if physical delivery occurs, different taxes will be levied based on the purpose of use. The new policy will be in effect from November 1, 2025, until December 31, 2027.

For investment purposes, the exchanges will implement a VAT refund upon collection and exempt city maintenance and construction tax and education surcharge. A special VAT invoice will be issued to the purchasing member unit based on the actual transaction price. If the purchasing member unit directly sells the standard gold or processes it into investment-purpose gold products (excluding legal tender gold coins issued with the approval of the People's Bank of China) and sells them, VAT must be paid according to current regulations, and a general invoice will be issued to the buyer, with no special VAT invoice allowed.

For non-investment purposes, the exchanges will exempt VAT and issue a general invoice to the purchasing member unit based on the actual transaction price. If the purchasing member unit is a general VAT taxpayer, the input tax amount is calculated based on the amount stated on the general invoice and a deduction rate of 6%. If the purchasing member unit processes the standard gold into non-investment-purpose gold products and sells them, VAT must be paid according to current regulations, and a special VAT invoice can be issued to the buyer.