DIAMOND imports rose to a record US$577 million at the Shanghai Diamond Exchange in the first half of this year as strong consumer demand and stable economic growth secured China's position as the world's second-biggest market for the glittering stone.

Diamond imports to China surged 92 percent in the first half, the Shanghai Diamond Exchange Administration said in a statement yesterday.

China trails the United States as the world's second-biggest market for diamonds. Japan, whose runner-up position was usurped by China in 2009, remained the third-biggest market with imports of US$334 million in the first six months, the Shanghai bourse administration said.

"China's jewelry demand is rising rapidly amid stable economic growth and increasing domestic consumption," the bourse administration said.

China's economy grew 11.1 percent in the first half, with retail jumping 18.2 percent in the same period.

The Shanghai Diamond Exchange, set up in 2000, is China's sole bourse for the precious stone.

China cut value-added tax on imported polished diamonds from 17 percent to 4 percent on July 1, 2006, while VAT is not imposed on imported rough diamonds. Since 2002, customs duties have been waived on rough and polished stones traded on the exchange.

Diamond imports and exports grew 76 percent to US$1.2 billion in the first half of this year at the exchange.

The Shanghai bourse attracted 25 new members in the first half, shoring up its total membership to 267.

More members, rising sales through the bourse and China's growing appetite for diamond jewelry have drawn more attention from the global industry.

The Shanghai bourse in 2004 joined the World Federation of Diamond Bourses, which was founded in 1947 to provide bourses trading in rough and polished diamonds with a common set of trading practices.