Luxury goods become less popular as economy slows

Shares of the world's largest jewelry retailer, Chow Tai Fook, tumbled nearly 8 percent to a two-week low on Thursday on weaker-than-expected sales, deepening a sector-wide stock slump as China's slowing economy undermines demand for luxury goods.

A host of Chinese companies, ranging from a steel maker to a large airline, have warned of disappointing results over the past week as growth in the country decelerates to its slowest pace in three years.

Evidence that the slowdown was spreading to China's luxury sector, which is a vital source of growth for companies worldwide, has spooked investors. Burberry Group Plc said on Wednesday that its sales had been hit by a slowdown in China.

Agencies - China Daily