Lawrence Ma, Chairman of the Diamond Federation of Hong Kong, says that Hong Kong has all the right ingredients to be a strong diamond centre

Lawrence Ma, chairman of the Diamond Federation of Hong Kong, China, said since World War II, Hong Kong has emerged as a significant diamond centre. Hong Kong's world-class financial services, its simple and low tax structure, efficient logistics infrastructure and the ease with which its well-educated workforce deals with diamond traders in South East Asia and the West ensured that Hong Kong was in a unique position.

"Between 1950s-80s, Hong Kong acted as a middleman between diamond dealers in Southeast Asia and the West," said Mr Ma who is also the executive director of the Lee Heng Diamond Group.

Much as changed these days and traditional patterns are collapsing. More and more overseas companies have become proactive and started setting up regional offices in Hong Kong. "Many diamond companies from Belgium, Israel, the US, India and Southeast Asia have set up offices in Hong Kong to be nearer the Chinese mainland which is considered the world's second largest polishing centre after India," said Mr Ma.

Marketing and distribution centre

Hong Kong has changed with the times and expanded its middleman role to become a value-added marketing and distribution diamond centre.       

"Hong Kong is in a very good position as it's very near to China's manufacturing and polishing base. China has over 20,000 diamond polishers who are skilful, cost effective and who deliver on time," said Mr Ma.

The Diamond Federation has members who fall into three categories, according to Mr Ma. They are the manufacturers followed by importers and wholesalers and lastly, the retailers.  He said manufacturers would do well if they have good control over their sources of rough diamonds and retailers would also be doing well because positive economic indicators such as soaring stock and property prices and a surge in mainland visitors meant that the Hong Kong retail scene has rebounded.

"The diamond industry will always need the manufacturers, the polishers and the retailers. Anybody in between like the importers and the wholesalers would have to try harder and deliver more value-added service," said Mr Ma.

Hong Kong, he maintains, will always be important as a diamond base.

"In Hong Kong we have strong advantages. There is integrity in the profession and in the market. Why else would consumers from Southeast Asia and the mainland come to Hong Kong? There is a wide choice of designs, excellent quality and competitive prices. In Hong Kong, the consumer is well protected and most retailers have good reputations, " said Mr Ma.

He said the Diamond Federation has set up a laboratory in Hong Kong to grade diamonds according to world-class standards and this will ensure further protection for consumers.

"Hong Kong is still very important for the overseas market as we have international trade shows, the know-how and the expertise in the diamond industry. I see lots of opportunities as the mainland market potential is enormous. The market is following the country's strong economic growth," added Mr Ma.

More details on Hong Kong's jewellery industry and the Hong Kong International Jewellery Show

Related link
Diamond Federation of Hong Kong