Chow Tai Fook Jewellery Group has reported a four per cent year-on-year increase in retail sales in the three months to September 30.

The welcome increase was attributed to surge in demand for gold as a result of falling gold commodity price since mid July.

The Hong Kong listed company says same store sales fell three per cent in value terms and rose one per cent in volume terms.

Mainland China stores led the growth, with Hong Kong and Macau shops showing a same store decline of 13 per cent and an overall decline of five per cent. Volume fell 18 per cent.

But in China, same store sales rose six per cent in value and 13 per cent in volume.

Chow Tai Fook described the Hong Kong and Macau retail market as “continuing lacklustre”.

Sales of gem-set jewellery there fell 24 per cent on a same store basis, but just four per cent in the mainland.