13 December 2013 - The world’s largest jeweler upbeat on China demand

Posted: 13 Dec 2013 03:28 AM PST

From:http://www.cnbc.com/id/101270508

The world's largest-listed jewelry retailer, Chow Tai Fook, is expecting a year of solid sales despite the slowing economic growth in China – its biggest market – and the impact of Beijing's crackdown on luxury gifts.

Kent Wong, managing director of the Hong Kong-listed firm, forecasts single-digit earnings growth in the financial year ending March 2014 from the year before, driven by a gold rush in the mainland after bullion prices fell sharply in April-June.

"I think this year will be better than last year," said Wong said in an interview with CNBC Asia's Managing Asia. "Even though the economic growth in China is slowing down, people are still willing to spend money," he said.

(Read more: China's biggest jeweler sees gold in the masses)

The company, which runs more than 1,800 stores in China, saw a 13 percent fall in net profit to $5.51 billion Hong Kong dollars ($710 million) in the year ended March 2013 owing to higher costs and weaker consumer spending.

There have been concerns that a moderating Chinese economy – whose growth slowed to multi-year lows this year – coupled with moves by the new government earlier this year to crackdown on exuberant personal spending and gift-giving by officials, could further hurt the company, which derives over 50 percent of its revenue from mainland China.

In response to the headwinds, Chow Tai Fook – which caters to clientele across the wealth spectrum – has stepped up its focus on affordable jewelry, noted Wong. "We have already adjusted our strategy to create some new designs at an affordable price," he said.

(Read more: China gold consumption set to cool in 2014)

Wong said the company has seen "minimal impact" from Beijing's anti-corruption drive as the majority of their customers purchase jewelry for their personal use. "Government officials usually like to buy watches, jewelry is quite a personal taste," he said.

China's love for gold remains price sensitive

Daniel Hynes, commodity strategist at Hynes Commodities discusses the demand outlook for the yellow metal.

While Chow Tai Fook generates revenues that are almost double that of Tiffany & Co's, it does not have the global presence of its U.S. competitor.

Wong said he aspires to change that. "It is my dream that one day we can become a global jeweler. But most important we must safeguard Chinese culture," he said.

He doesn't expect the increasing number of international players in China to pose a threat to Chow Tai Fook's business, believing that the market is big enough to accommodate multiple players.

(Read more: Gold rout boosts sales of world's largest jeweler)

"We welcome different competitors in the market so that the standard of service and craftsmanship [can be raised]," he said

—By CNBC's Ansuya Harjani; Follow her on Twitter: @Ansuya_H

Source:http://www.cnbc.com/id/101270508

13 December 2013 - 亚洲实物需求推动2014金价回升

Posted: 13 Dec 2013 03:17 AM PST

From:http://gold.jrj.com.cn/2013/12/13153216327189.shtml

2013年可谓是黄金转折的一年，在经历了12年的上涨后，金价终于在今年有所下跌。当另一方面，由于金价的下跌，实物黄金的需求也创下了记录。

The Motley Fool认为在整个宏观经济不确定，金饰需求维持的情况下，明年金价将回升。

世界黄金协会（WGC）的报告显示今年前九个月金币金条和金饰的需求达到2896.5吨，其中大部分需求来自亚洲和中东地区，其增长的90%来自这些地区。

此外，WGC还称更高含量的黄金需求在全球都有所增长。这说明黄金不光是装饰用，更是投资品。全球范围内宽松的货币政策都是推动金价的因素。

实物黄金在新兴市场，尤其是中国和印度的需求仍然旺盛。数据显示中国大陆十月自香港进口黄金131.2吨，是三月以来最高水平。今年一至十月中国大陆自香港进口黄金总量则达986吨，是2012年同期的两倍。

The Motley Fool认为新兴市场地区人口的增加尤其是中产阶级的增加将在未来继续推动实物黄金需求。

Source:http://gold.jrj.com.cn/2013/12/13153216327189.shtml

13 December 2013 - The world’s largest jeweler upbeat on China demand

13 December 2013 - The world’s largest jeweler upbeat on China demand

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