The World Federation of Diamond Bourses (WFDB) and the Shanghai Diamond Exchange (SDE) have signed a Memorandum of Understanding (MoU) aimed at promoting the natural diamond market in China.
This agreement follows meetings held during the WFDB Presidents’ Meeting in Shanghai in March, where WFDB leaders and Chinese government officials discussed initiatives to invigorate the Chinese diamond market
Objectives of the MoU
The MoU aims to enhance collaboration through joint events, marketing campaigns, and bilateral visits. The WFDB will open a representative office within the China Diamond Center, while the SDE will work on advancing the local diamond industry.
WFDB President Yoram Dvash highlighted the significance of this MoU, noting that the decline in diamond demand in China has caused a substantial imbalance in the global diamond market. He stated, “The WFDB recognizes that the decline in diamond demand in China has caused a significant imbalance in the diamond market and presents a major challenge for the world diamond industry. The WFDB MoU with Shanghai signifies an important step toward cultivating a strong and healthy diamond industry in China, the second largest global market for natural diamonds.”
Market Context
China is a key market for the diamond industry, both as a major consumer and producer of lab-grown diamonds (LGD). Despite LGDs’ prominence, research by Chow Tai Fook shows that many Chinese consumers still view natural diamonds as more valuable, presenting growth potential for the natural diamond market.
Implications for the Jewellery Industry
The signing of this MoU between the WFDB and SDE represents a proactive approach to reviving the natural diamond market in China. For jewellers, this agreement could lead to increased demand for natural diamonds, driven by targeted marketing campaigns and a stronger industry presence in China. The establishment of a WFDB office within the China Diamond Center also suggests a commitment to long-term engagement and support for the Chinese diamond industry.
Jewellers should anticipate potential market shifts as these initiatives unfold. Increased collaboration between international and Chinese diamond organisations could result in new opportunities for sourcing and selling natural diamonds. Additionally, the emphasis on promoting the value of natural diamonds over lab-grown alternatives might influence consumer preferences and demand patterns.
