Shares of Hong Kong-based jeweler Chow Tai Fook soared by 10.30% on Wednesday, October 23, 2024, outperforming the broader market amid reports of higher margins driven by elevated gold prices and expectations of potential economic stimulus measures from the government.

Despite reporting sharp falls in sales, Chow Tai Fook's stock rallied as the company indicated that the high gold prices were helping to offset the impact on profitability. Investors appeared to focus on the potential for improved margins, betting that the company's cost-cutting measures and operational efficiency could help mitigate the sales decline.

The surge in Chow Tai Fook's shares was further supported by the broader optimism in the Chinese and Hong Kong markets, fueled by expectations of potential economic stimulus measures from the government. The promise of policy support for the struggling economy boosted market sentiment, contributing to the jeweler's stock price jump. Macquarie also upgraded its rating on Chow Tai Fook to Outperform from Underperform, with a price target of HK$9, adding to the positive momentum.