RAPAPORT… Macau is hoping to leverage its relations with Portuguese-speaking diamond producers to emerge as a competitive rough-trading hub.
Members of the newly created Macau China Diamond & Gem Exchange (MDGE) last week signed an agreement with the Shanghai Diamond Exchange and the Industrial and Commercial Bank of China (ICBC Macau) to promote the city as a global diamond and gem trading center.
Macau was a Portuguese trading post until it became a Chinese municipality in 1999, and the local government is looking to partner with rough producers such as Angola to strengthen its position in the diamond market.
“MDGE will actively develop concentrated rough-diamond trading, which will drive rough diamonds into the Shanghai Diamond Exchange and further promote the Chinese industry,” the organization explained at a briefing during the Hong Kong Jewellery & Gem Fair. In doing so, the exchange has the potential to connect with diamond and jewelry companies operating in China’s consumer market, it added.
The agreement will facilitate the creation of a “diamond bank,” that will capitalize on the city’s free port and its emerging financial industry, to inject liquidity into the diamond and gem market, the MDGE explained. ICBC will provide financial services to the exchange and its members.
The MDGE launched this year under the auspices of the Shanghai exchange, and is offering membership to local and international diamond businesses.
Image: Members of the Macau China Diamond & Gem Exchange, the Shanghai Diamond Exchange and the Industrial and Commercial Bank of China (ICBC Macau) celebrate their partnership at the Hong Kong Jewellery & Gem Fair (courtesy picture).