Although Israeli diamantaires are giving mixed reviews of the September Hong Kong Jewellery & Watch Fair, Israel?s polished diamond exports to this part of the world are definitely on the rise. Statistics published by the Israel Diamond Controller show that for the first nine months of 2006 Israel?s polished diamond exports to Hong Kong rose by 5% to $779.4 million and to China by 6% to $80.5 million. These results are even more impressive in comparison to current exports to traditional markets like the United States and Belgium.

Hong Kong is the gateway to the entire South East Asian market, which is growing continuously, but people in the know are expecting China to surpass all of the other countries in the region combined. Although today Mainland China accounts for only 4% of world diamond sales, ?In 25 years time, China will be the biggest market,? said Stephen Lussier, head of marketing at De Beers. ?We?ve seen in Hong Kong that as incomes go up, the diamonds just get bigger,? he added.

Fifteen years ago few in China knew anything about diamond jewelry, but today eight out of ten brides in Shanghai and Beijing receive a diamond ring. No other market has developed this quickly. According an article published in the Guardian, it took 50 years for the US to get to this level and 20 years for Japan.

Just last month the Chinese market received a vote of confidence from one of the top luxury jewelry brands, when Bulgari opened an expanded store in Shanghai. Nicola Bulgari, vice chairman of the Bulgari Group, said that Bulgari considers the Chinese mainland as one of the key markets to develop in coming years, and is considering 10 additional locations there.