Hong Kong jeweller Chow Tai Fook expects rising profits on the back of strong gold product sales in the first six months of the year.

Chow Tai Fook says the reduced effect of an unrealised hedging loss on gold loans will further aid its result.

The profit alert has been made by the company as it prepares the interim financial statements.

Last year, the jeweller’s profit for the six months to September 30 stood at HK$1.82 billion (US$235 million).

Chow Tai Fook operates more than 1800 stores in Hong Kong, mainland China and Macau.