Chinese authorities have introduced new tax rules requiring individuals with offshore accounts to declare these assets by October 22 and pay overdue taxes at a rate of 20%. The policy targets wealthy Chinese individuals who may have been hiding assets abroad to avoid paying taxes. This move has raised concerns among French luxury brands, which are already dealing with the impact of the war in Iran and a slowdown in consumer spending in the United States. Experts believe the tax regulation could be part of a larger effort to strengthen tax policies for the wealthy. The luxury industry has been experiencing a slowdown for three years, and the new tax rules may add further pressure. This comes as major luxury companies like LVMH, Kering, and Hermès prepare to release their quarterly results starting next week. Shares of LVMH and Hermès have dropped by about 40% since the beginning of the year, reaching multi-year lows, while Kering’s shares have declined by 29%. Chinese consumers, who account for about a fifth of global luxury sales, have seen a sharp decline in domestic demand since the end of the Covid-19 pandemic. Alexis Bonhomme, director of the luxury consulting firm Trinity Asia, noted that some wealthy Chinese individuals may face liquidity issues before the tax deadline. However, he suggested that they may still make purchases in the long term. Bernstein analysts have observed a "clear deceleration of growth" in Chinese mainland shopping centers, indicating a continued slowdown in consumer spending. LVMH will release its luxury sector results on Monday, with analysts expecting a 1% annual increase in the group’s quarterly sales. Kering and Hermès will publish their results on October 22. Kering has already warned about Gucci’s performance, which led to several downgrades for its stock. The upcoming results will provide more insight into how the luxury sector is faring amid these economic and regulatory challenges.