China is a nucleus in the global economy. It is a manufacturing centre that contributes almost 16 per cent to the global gross domestic product. Hence, when the country is being overrun by a super-spreader like coronavirus, certain amount of collateral damage was expected. And Hong Kong, one of the main centres for gems and jewellery globally, is not too far away from Wuhan, the city where this dreadful virus first germinated. About 3350 manufacturing companies import and export precious jewellery in Hong Kong.
The outbreak has left the jewellery industry in a state of frenzy. In Hong Kong, more than 15 cases have been reported so far. The Hong Kong International Diamond, Gem & Pearl Show, one of the most important events for the gems and jewellery industry has been postponed. HKTDC stated that the show which was originally scheduled March 4 – 8 at the Hong Kong Convention Centre and the International Diamond, Gem & Pearl Show scheduled March 2 – 6 at AsiaWorld-Expo, will be postponed toMay 18 - 21 at the same venue.
Months of preparation ahead of the show has been put to test with the decision of postponing the show, as many stakeholders believe that the new timing of the show may not be fruitful after all. It does seem like Hong Kong has been jinxed, with issues cropping up one after the other, first the protests and now the deadly virus. The prodemocracy protests proved a headache to the entire gems and jewellery industry, especially India, which exports a third of its diamonds to Hong Kong. Ahead of Chinese New Year and Christmas, both very important events in HK, the protests presented a challenge, stunting the Chinese economy to a large extent. A report by Reuters suggested that the Hong Kong government has shut 10 border checkpoints with mainland China but stopped short of a complete closure. The city which is full of opportunities, always buzzing with activity is now fear stricken with a weak morale, because it is braving political, social and economic problems at the same time.