Diamond imports traded through the Shanghai Diamond Exchange totalled $195 million during the first-half of this year - up a massive 227.9 per cent compared with the year ago period.

The increase in trading has been attributed by China's sole diamond bourse to the tax break on value-added stones.

Under the terms of the tax cut, which was introduced half way through 2006, VAT on imported uncut diamonds was abandoned altogether while taxes on imported refined diamonds were reduced from 17 per cent to four per cent.

Meanwhile during the same period, combined exports and imports trading was up 115.7 per cent to $419 million, with general trade in exchange for both import and export hitting a new monthly record in April of $92.73 million.

News of the bourse's profits follows projections from Jewellery Net Asia predicting that the Chinese luxury goods market, including demand for platinum and diamond jewellery, is set for massive growth.

Sources:

China's 1H07 Diamond Trade +116%, 19/07/07

http://www.diamonds.net/news/NewsItem.aspx?ArticleID=18390

CHINA'S DIAMOND TRADE SOARS IN FIRST HALF OF 2007 BY 119.5%, 18/07/07

http://www.diamondintelligence.com/magazine/magazine.asp?id=5263

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