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Shanghai Exchange, Diamond Fed. of Hong Kong Sign Agreement

Mar 31, 2011 8:58 AM   By Deena Taylor
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RAPAPORT... The Shanghai Diamond Exchange (SDE) and the Diamond Federation of Hong Kong (DFHK) signed a cooperation agreement in an effort to grow  the diamond industry in China and Hong Kong.

According to the terms of the agreement, the two parties will share resources to maximize trading activity and enable an exchange of member services. In addition, the DFHK and SDE will develop and implement a business promotion plan for the partnering country and work to facilitate an international jewelry exhibition. The parties will also hold regular management meetings and develop a strategic plan to help promote general trade of more than $800 million in 2011, with the aim of increasing the figure.

"China's huge market potential has been the focus of global economic development therefore we see the need to build a communication bridge for the local and overseas industry players," according to the DFHK. "Riding on the maturing business relationships between Hong Kong and the Mainland, we will collaborate with the Shanghai Diamond Exchange to foster partnership relationships. Together we aim to align and connect to the international and the mainland’s markets, driving beneficial development of the overall industry." 

Hong Kong has become southeast Asia's most important diamond trading center. Total diamond trading from Hong Kong to China from 2002 to 2010 rose by 374 percent. As the SDE is the only diamond import and export trading platform, it can fulfill the need for increasing trade activities. In 2010, the total amount of polished diamonds exported from Hong Kong to the SDE was $5.57 billion, accounting for 43 percent of total imports through the exchange.  

China has become the world's second-largest diamond processing center contributing 30 percent to 40 percent of the total diamond industry output. Up to 50 percent of the workers are managed by Hong Kong invested companies. China has also become a world leading diamond consumer market and surpassed Japan in 2010 to become the second largest market.  

Tags: Deena Taylor, Hong Kong, Shanghai Diamond Exchange
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