China’s jewelry market is showing signs of improvement, though the US tariffs present fresh uncertainty, Hong Kong industry executive Lawrence Ma tells the Rapaport Diamond Podcast.
Government policies are starting to pay dividends for the mainland economy, while reductions to diamond inventories have spurred demand, according to Ma, founding president of the Diamond Federation of Hong Kong, China.
Ma spoke with Rapaport’s Joshua Freedman following the Hong Kong International Diamond, Gem & Pearl Show and the Hong Kong International Jewellery Show, which took place earlier this month.
Most feedback from the fairs was a “pleasant surprise,” said Ma, as many diamond dealers reported better trading than they had expected.
“Until a few months ago, people were still quite disappointed and worried about [whether a] Chinese recovery [would happen],” he observed. “[In] the last two [or] three months, we see people gaining confidence and policy really in place to help the local economy, the small and medium enterprises, and…the general consumption [has started] to improve.”
In 2023, a very difficult year for the industry, the diamond midstream had been receiving polished goods from China, said Ma, who is also the chairman of the organizing committee for the fairs and CEO of diamond wholesaler Lee Heng Diamond Group. This reflected mainland retailers returning diamonds rather than buying them.
But in recent months, polished inventories have “come down a bit to a level [where] people will consider replenishing, especially now the prices are at a lower level,” the executive elaborated.
Still, US President Donald Trump’s decision to place additional 10% tariffs on Chinese products might impact the market, as the last Sino-American trade war did in 2018 and 2019.
China’s jewelry exports to the US likely enjoyed a boost in recent months as companies tried to complete orders before tariffs came in. However, the figures “will be affected by the uncertainty,” in the next few months, Ma postulated.
Listen to the episode here:
This podcast is sponsored by Del Gatto Finance Fund, the largest non-bank lender to the global diamond and jewelry industry.
The presenter attended the Hong Kong International Diamond, Gem & Pearl Show and the Hong Kong International Jewellery Show as a guest of the Hong Kong Trade Development Council (HKTDC).
