From 1 November, the Chinese authorities reduced the exemption from 13 per cent to 6 per cent on value-added tax (VAT) for certain gold purchases made by companies. The two Chinese SARs of Hong Kong and Macau are not covered by the new policy.
“This is good news for the industry,” said the vice-president of the Macau Goldsmiths Association. “The price gap between mainland China and Macau has widened, leading to an increase in business from visitors who now buy gold here out of necessity,” added Lei Cheok Kuan.
Lei acknowledged that there has not yet been an immediate increase in turnover, “because some people from mainland China are not able to come to Macau straight away”. Beijing imposes limits on the number and length of visits that mainland Chinese residents can make to Macau, as well as to neighbouring Hong Kong.
However, Lei noted a clear trend: “among those who have long been interested in gold jewellery or invest in the metal, the price difference is a significant factor in their purchasing decisions when they are visiting Macau”. The policy change is already affecting the mainland Chinese market.
The World Gold Council noted on social media that Chinese gold jewellery manufacturers and wholesalers have introduced across-the-board price increases, “with the rise reflecting the additional tax burden borne by companies”.
Jewellery group Chow Tai Fook announced on 3 November that it had “adjusted prices” on some products and is “proactively managing the impact of higher costs in the purchase and production of gold”. Chow Tai Fook, one of China’s largest jewellery groups, closed more than one thousand retail stores in mainland China during the first nine months of 2025, maintaining a network of 5,663 shops.
However, the World Gold Council clarified that investors in gold bars and coins who buy investment products directly from members of China’s main gold exchange, the Shanghai Gold Exchange, “will not be affected in any way”.
The Chinese province of Gansu (northwest) announced the discovery of a major new gold deposit in the Qianhongquan–Heishanbeitan area, in Yumen municipality, with estimated reserves of more than 40 tonnes, state broadcaster CCTV reported in October.
The price of gold, historically seen as a safe-haven asset in times of uncertainty, was down 0.52 per cent on Monday, with an ounce (equivalent to 31.1 grams) trading at US$4,094.5, below the all-time high of US$4,347.86 reached on 20 October.
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