Leaders of Hong Kong gem and jewellery trade associations cited the city’s tax-free status, resilience and innovative nature as key to maintaining business stability amid challenging market conditions.

Speaking at the Jewellery & Gem ASIA Hong Kong (JGA) Media Gathering on June 19, they said that industry players in the city are championing innovation to navigate headwinds stemming from US tariffs, market slowdowns and geopolitical tensions.

Victor Yiu, chairman of the Diamond Federation of Hong Kong, China (DFHK), noted that companies are diversifying their customer bases and exploring different platforms and channels to sustain growth. He said, “While the US is a major market for Hong Kong, we can tap other regions such as the Middle East, where demand remains strong for diamonds and jewellery.”

Victor Chan, chairman of the Hong Kong Jewellery & Jade Manufacturers Association (HKJJA), pointed to growing opportunities in Southeast Asia, while DFHK Founding President Lawrence Ma noted the need for product, market and channel innovation.

Trade leaders also underscored Hong Kong’s continued importance as a jewellery trading hub. “Hong Kong is still a free port, so we encourage all buyers and exhibitors to use the city as a platform to do business,” Yiu said. “Informa Markets’ shows in June and September provide an excellent platform for business growth.”

Ma cited Hong Kong’s resilience, adaptability and propensity for innovation as the foundations of its success as a thriving jewellery hub. Hong Kong’s tax-free status also makes it a great platform for trade, he added.

“The global industry has been concerned because the business cycle is different from the way things have been in the last six decades – periods of boom followed by periods of setbacks,” Ma explained. “But things are getting back to normal – not how it was before but the normalcy that we create through collaboration and innovation.”

Ma said he expected matters to settle by year-end and improve over the next few years. “I remain positive and am certain we will have more good stories to share by September,” he said.