The Shenzhen Rough Diamond Exchange (SRDE) plans to expand into polished trading and is preparing to rename itself in light of the change.
The exchange is in the process of rebranding as the Shenzhen Diamond Exchange and has been carrying out trials of imports of polished diamonds since late 2016, a bourse spokesperson told Rapaport News.
The SRDE opened a bonded warehouse in December 2015, where rough diamonds and colored gemstones that have been shipped into the southeastern Chinese city can be held tax-free for traders to view, according to the report.
Via this arrangement, contractors can cut rough diamonds, while colored stones can enter the Chinese market following payment of tariffs and value-added tax.
The exchange, home to more than 50 members, now plans to receive polished diamonds, which will then be sent to the Shanghai Diamond Exchange according to import procedures.
Shenzhen is the biggest jewelry hub in China, with around 90 percent of the diamonds the country consumes passing through the city’s traders or jewelry manufacturers, according to Liu Jianhua, deputy secretary-general of the diamond division at the Gems & Jewelry Trade Association of China. Liu spoke at a diamond industry forum in the city last week.
