China's diamond imports in the first half of 2010 spiked some 92%, the Shanghai Diamond Exchange Administration said.

According to the SDEA, diamond imports rose to a record $577 million 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.

China trails the United States as the world's second-biggest market for diamonds, with Japan coming in as the world's third-biggest market with diamond imports coming to $334 million for H1-2010.

"China's jewelry demand is rising rapidly amid stable economic growth and increasing domestic consumption," the bourse administration said. 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% to 4% in 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.