Luxury & China

There October 22nd deadline for Chinese ultra-high-net-worth individuals to declare and pay years of back taxes. This 20% levy has triggered temporary liquidity constraints and severely dampened the "mood" to buy big-ticket items. Stocks like LVMH (MV.PA) are seriously below their peak - while there are several factors influencing this price seems reasonable that in the medium to long term the stock will fly high again. This is a great opportunity for people who want to invest for the medium the long term horizon. Chinese demand will rebound once this deadline has passed and maybe more importantly once the housing crisis has passed. I would not expect a Christmas payout - but in the next few years this stock will be paying back the investment handsomely.

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Originally published on Substack on 09 October 2026.