Indian Diamantaires Worried Over Bankruptcy Reports From China, Hong Kong

There have been reports of three to four jewellery companies in China, Hong Kong and Tokyo having gone bankrupt, as per media reports. However, identities of these companies have not been revealed so far.

As reported, these companies have defaulted on a total payment of Rs 1,800 crore. Besides, the financial condition of at least six other firms stated to be fluid which may cause polished diamond traders huge losses. The reports have caused anxiety among the Indian diamantaires based in Antwerp, Mumbai, Surat and Hong Kong. Indian diamantaires from Surat, Mumbai and those based in Hong Kong, who supply polished diamonds have started making frantic inquiries with their buyers in these three countries, adds the media report.

The report further states that India exports $28 billion worth polished diamonds every year of which nearly $8 billion goes to Hong Kong. The international gold prices have seen a sharp fall in 2014 compared to the previous year. This could be the reason for the jewellery companies not able to survive in the market.