The World Federation of Diamond Bourses (WFDB) convened an Asia Summit Meeting, the first of its kind, on June 29 in Hong Kong. The summit’s aim was to strengthen the WFDB’s ties with member diamond bourses in Bangkok, Hong Kong, Mumbai, Shanghai, Singapore and Tokyo. Five of the six bourses invited to the summit sent high-ranking delegations to attend the meeting.



WFDB President Avi Paz noted that Asia will soon be one of the world's leading and most diversified markets for diamonds and diamond jewelry. Due to the dynamic nature of the world diamond business the WFDB Asia Summit was made even essential.



"'One of the WFDB's tasks is to make its members aware of changes in world markets and in particular to distribute essential information about the potential opportunities in Asia. In order to do so, we need to improve communication in both directions," Paz said.



Paz noted that China has significantly lowered its taxes for diamonds and that as a result, taxation issues are no longer a barrier for commerce in that country. He advised countries such as Russia and Turkey to take note of how China has opened up its market.

Lin Qiang, president of the Shanghai Diamond Exchange, stated that China's diamond and jewelry business is relatively the least affected by the global economic crisis. China’s market rebounded after a significant downturn in the fourth quarter of 2008. Lin stressed that cooperation between WFDB member bourses is vital to further growth in the market.



According to representatives from China, Thailand and Singapore, local governments have taken steps to assist local diamond and jewelry industries and trade. The level of exports from Asian markets will greatly depend on how fast the western economies rebound, particularly the USA.

The Japanese market has reportedly been affected by a long slump in the luxury product consumer market, but analysts predict a significant recovery in the spring of 2010.



The meeting also dedicated significant time to what the WFDB can do to assist Asian members. According to Suresh Hathiramani, vice-president of the Diamond Exchange of Singapore, the WFDB should make efforts to help preserve existing market segments such as the engagement and bridal diamond jewelry markets.