China’s Jewelry Market Improves, but Diamonds Lag
The Beijing Declaration on Natural Diamonds and Sustainable Development, signed by the Shanghai Diamond Exchange and government representatives from Botswana, Namibia and South Africa, recognizes the connection between diamond purchases in China and the socioeconomic impact of the industry in Southern Africa.
The agreement contains few practical commitments. It is a declaration of intent, rather than a roadmap. Still, it acknowledges an important opportunity: Chinese consumers need a stronger understanding of how diamond revenues support producing countries. Its significance will depend on the follow-up, and whether that story can become a meaningful reason to choose diamonds.
The timing is encouraging. Jewelry sales are improving across greater China, particularly in Hong Kong and Macau. Chow Sang Sang’s revenue rose 17% to HKD 12.9 billion in the first half of 2026, with mainland China sales up 9% and Hong Kong and Macau up 38%. Chow Tai Fook and Luk Fook reported a similar regional divide, with much stronger growth in Hong Kong and Macau than in the mainland. Tourism, cross-border spending and local demand are helping lift sales, but the recovery is not evenly spread across jewelry categories.
Gold is the main driver. At Chow Sang Sang, same-store sales of weight-based products, largely gold, rose 34% in mainland China and 55% in Hong Kong and Macau. Consumers are buying gold as jewelry and as a store of value, drawn to the visibility and familiarity of its pricing. By contrast, Chow Sang Sang’s fixed-price jewelry, which includes diamond and other gem-set products, fell 20% in mainland China and rose just 7% in Hong Kong and Macau. Luk Fook reported pockets of strength in gem-set jewelry, but also a decline in fixed-price gold and diamond jewelry. This is not a broad-based diamond revival. It is a selective market, where particular brands, channels and price points are performing better than the wider category.
That distinction matters for the diamond pipeline. Stronger jewelry turnover does not automatically translate into stronger diamond trading, particularly in a mature market where retailers are managing their store networks and inventory more tightly.
China is not yet strong enough to lift polished, manufacturing or rough demand, but it is also no longer weakening in a way that will drag the market down further. For Southern Africa, the Beijing Declaration is a starting point rather than a solution. Its relevance will rest on sustained work to show Chinese consumers why diamonds from Botswana, Namibia and South Africa matter.
Watch the full video analysis above.
This article was written with the assistance of ChatGPT, based on a summary of the original video transcript.
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