Rising gold prices fueled by geopolitical tensions has sparked a parallel rally for new listings by Chinese jewelers who make their living by selling the precious metal. The latest of those saw Laopu Gold (6181.HK) raise HK$830 million ($106 million) in a Hong Kong IPO late last month, as rival Mokingran is also in the process of listing. Now, another rival, Zhou Liu Fu Jewellery Co. Ltd., is also seeking gold on the Hong Kong Stock Exchange by filing of its own listing application late last month.
Unlike the others, Zhou Liu Fu is somewhat controversial due to the likeness of its Chinese name with two other popular Hong Kong jewelers, Chow Tai Fook (1929.HK) and Luk Fook (0590.HK). It is actually related to neither, and its use of a name similar to two better-known brands was a common practice in earlier times in China as young new brands tried to capitalize on the greater recognition for their global peers.
Chow Tai Fook is Hong Kong's leading jeweler with a history of nearly 100 years, and Luk Fook is also well-known and more than 30 years old. Ironically, Zhou Liu Fu, whose history dates back just two decades, is now suing some of its own upstart competitors in China for the kind of infringement that it was previously accused of.