(From right) Nick Paspaley, Robert Wan and Michael Sze of the TDC, organiser of the Hong Kong Jewellery Fair. Both pearl producers credit TDC for having the vision to turn Hong Kong into a pearl auction centre

Hong Kong long known as the Pearl of the Orient is also a global centre for pearl auctions, said two of the largest pearl producers in the world. They also have an eye on the huge Chinese mainland market taking advantage of tax-free tariffs under the free trade pact Cepa.

Nick Paspaley, executive chairman of Australian pearl producer and distributor Paspaley Pearling Company and Robert Wan of Tahiti Perles, said Hong Kong's proximity to the huge Chinese mainland market, ease in doing business, excellent infrastructure and non-restriction on currency exchange are prime factors in choosing Hong Kong as a base for pearl auctions.

"The Hong Kong International Jewellery Fair which draws in global buyers is the only fair in the world to focus on pearl auctions. If you are serious about buying pearls, I don't know of any other place in the world to go to," said Mr Paspaley.

The four-day Hong Kong Jewellery Fair which ended on 5 March showed products from 1,380 exhibitors from 34 countries and regions, up 16 per cent on last year. More details.

Jewellery producers enjoy tax-free benefits under Cepa

The Australian company used to hold most of its auctions in Japan but has since shifted its base to Hong Kong. It holds three auctions a year in the SAR and one in Japan. A three-day auction concluded recently at the Hong Kong Jewellery Fair generated sales worth US$12 million, a surge of more than 20 per cent as compared to an auction sale in Japan last year. Top buyers were from Hong Kong and Europe.

"Hong Kong buyers distribute to China and to the whole world. As a producer and distributor I would like to see my pearls being used globally so Hong Kong being such an international place is the obvious choice," said Mr Paspaley.

Mr Wan of Tahiti Perles, the world's largest producer of Tahitian black pearls, is exploring opportunities in the mainland via Hong Kong by taking advantage of tax-free benefits under Cepa.

"Cepa is a very interesting free trade pact and is helpful to jewellery producers. If you make pearls into jewellery and ship to the mainland you can enjoy tax free benefits," said Mr Wan who also has a company in Hong Kong.

Starting from 1 January 2004, 374 types of products made in Hong Kong can be exported to the mainland free of tariff. More details in Cepa.

Related links:
Paspaley Pearling
Tahiti Perles