China's diamond market posts strong growth

May 15, 2009 (China Knowledge) - China has become one of the world's largest diamond-consuming markets in recent years, with the total transaction volume on the Shanghai Diamond Exchange hitting US$1.37 billion and retail sales of diamond jewelry exceeding RMB 20 billion in 2008, the People's Daily reported on Wednesday.

Information revealed at the Jewelry Shanghai 2009 trade show, currently underway, indicates that the diamond market is the fastest growing segment of the Chinese jewelry market. Industry analysts say China's diamond market is likely to begin to grow at an increased speed because China's economy is predicted to be the first one to recover from the crisis.

In Europe, the U.S. and Japan, the diamond markets have all been affected by the global financial crisis and have seen noticeable declines in sales. The diamond market in mainland China, however, has maintained relatively fast growth and has become the only region to post sales growth among the major global economies, according to the paper.  

De Beers Group, the world's largest diamond producer, said its diamond sales in China grew over 15% in 2008, while sales in traditional major markets such as the U.S. and Europe have experienced a downward trend.