International gold prices have retreated over 22% from their early-year highs, with Chifeng Gold falling over 20% intraday.

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Source: Cailian Press

Today, the Hong Kong stock market’s gold sector experienced significant adjustments. As of the latest report, Chifeng Gold (06693.HK) fell 22.10%, Lingbao Gold (03330.HK) dropped 10.02%, Shandong Gold (01787.HK) declined 6.69%, and Tongguan Gold (00340.HK) decreased nearly 5%.

In related news, international spot gold prices dipped to $4,320.19 per ounce in the early trading session, a nearly 4% decline for the day, hitting a new low since January 2. This is a decline of over 22% from the January 29 all-time high of $5,595.44 per ounce.

As of the latest report, international gold prices are down 1.86%, at $4,416.68.

Regarding the sharp decline in gold prices, some analysts point out that tensions in the Middle East have kept international crude oil prices at high levels since 2022, raising concerns about “oil-driven inflation.”

Previously, the market widely expected the Federal Reserve’s rate cut path, but this has been fundamentally questioned—bond traders quickly adjusted their strategies, completely erasing bets on further easing in 2026, and even pricing in a 50% chance of a rate hike by the end of October. Short-term yields have risen rapidly, causing previously bullish trading strategies to retreat significantly, and gold, as a non-interest-bearing asset, has come under noticeable pressure.

Chifeng Gold once dropped over 25% during trading

In addition to the decline in international gold prices, announcements related to Chifeng Gold triggered a sharp drop in its stock price.

According to Chifeng Gold’s announcement, Zijin Mining Group (Zijin Group) will subscribe to 311 million new H-shares at HKD 30.19 per share, totaling approximately HKD 9.386 billion, representing a 28.3% discount to the last trading day’s closing price; simultaneously, Zijin Group will acquire a total of 242 million A-shares held by the largest shareholder Li Jinyang and Zhejiang Hanfeng at RMB 41.36 per share. After the transaction, Zijin Group’s stake will increase to 25.85%, making it the controlling shareholder.

As the largest gold producer in China, Zijin Group has a mature system in mineral exploration, mine construction, smelting and recycling, and supply chain management. This cooperation will help Chifeng Gold accelerate resource conversion efficiency, optimize production operations, and strengthen technological and management collaboration. The raised funds will be specifically used for overseas expansion, including building new power facilities, encryption and deep exploration, shaft engineering advancement, and acquisition of high-quality mining assets, to solidify long-term resource reserves.

This transaction is subject to approval by Chifeng Gold’s shareholders and the fulfillment of several conditions before implementation. Zijin Group has committed not to transfer the subscribed shares within 18 months of the transaction’s completion. Chifeng Gold’s H-shares resumed trading today.

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Editor: Zhu Hena