Chinese gold jewellery stocks slumped Monday after Beijing introduced new tax rules on gold, lifting consumer costs, and bullion prices once fell below US$4,000 (HK$31,200) an ounce.

Laopu Gold (6181), often called the "Hermes of gold", plunged as much as 9.4 percent to a seven-month low of HK$620.

Chow Tai Fook Jewellery (1929), Luk Fook (0590) and Chow Sang Sang (0116) each fell more than 7 percent, while Zhou Liu Fu Jewellery (6168) also dropped over 3 percent.

China ended a long-standing tax exemption policy for some gold retailers on Saturday, potentially setting back a buying spree for the precious metal in the world's biggest consumer market.

Beijing will remove the full exemption on the 13 percent value-added tax on gold that some buyers purchase from the Shanghai Gold Exchange or the Shanghai Futures Exchange, lowering the exemption to 6 percent from November 1, according to new policies made public by the Ministry of Finance on Saturday. The lower exemption will last until December 31, 2027.

Gold held steady on Monday, kept in check by a strong US dollar as investors dialled back bets for further Federal Reserve rate cuts in the near term, while easing US-China trade tensions also crimped bullion demand.

Spot gold was flat at US$4,000.65 per ounce, as of 0504 GMT. U.S. gold futures for December delivery rose 0.4 percent to US$4,010 per ounce.

Chinese gold miners weakened, with China Gold International Resources (2099), Shandong Gold Mining (1787), Zijin Mining (2899), Zhaojin Mining Industry (1818) and Zijin Gold International (2259) falling between 1.5 percent and 5.2 percent.

STAFF REPORTER and REUTERS

Chinese gold stocks fall as new tax rules hit jewellery, bullion dips below US$4,000