Under the Chinese lunar calendar, 2014 is considered to be a good year to get married. Thus, it will be no surprise if we see a significant spike in the number of weddings next year and the related boom in consumption.
Investors scrambled earlier to build positions in baby-care-related stocks in reaction to China’s plans to ease the one-child policy. Now, in addition to the baby boom theme, the marriage concept is worth bearing in mind.
A mainland gentleman often has to keep a home, enough cash and a vehicle ready, apart from approval of the prospective mother-in-law, in order to win a bride. On top of that, gold jewelry gifts are also deemed indispensable in a traditional Chinese marriage.
By custom the bride wears all the gold gifts during the wedding party, aiming to show off how good the groom’s family will be treating her. For this “face” reason, the groom’s side is seldom stingy in purchase of gold jewelry.
China has become the world’s biggest importer of gold. Barring unforeseen circumstances, the title will be kept in 2014. While the country alone may not be able to reverse a global downtrend in bullion price, jewelry retail chains do however offer investors an opportunity to tap into the growing demand for the precious metal.
Chow Tai Fook Jewellery Group Ltd. (01929.HK) and Luk Fook Holdings (International) Ltd. (00590.HK) have seen their fiscal first-half to September profits soar 92 percent and 73 percent, respectively, from a year earlier. Going forward, things may get even better in the coming year of marriage.
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