Peace Mark (Holdings), Hong Kong's largest maker of timepieces, said its Mainland expansion plan will not be affected by a 20 percent consumption tax on luxury watches, The Standard reported. The company’s chief financial officer Kevin Tsang stressed the tax will not hurt its plans to open 30 luxury watch stores in China within five years. The company launched its first luxury watch shop in Shanghai's Jin Mao Tower last August. A second shop opened in Shanghai's Xintiandi district in May. The company develops its business in the Greater China region through a joint venture with Tourneau and International Watch Group. The joint venture aims to launch two more stores in Beijing before next March. Luxury watches are defined as those composed of precious metals or with an importation value of more than 10000 yuan. The company is targeting a 35 percent gross margin in luxury watches in fiscal 2007.