From humble beginnings in the jewellery trade, Hong Kong has grown to become a significant centre for diamond distribution. Its jewellers, supported by a solid manufacturing base in the mainland, are some of the most efficient operators in the world.
Since World War II, Hong Kong has become increasingly prominent as a diamond centre, says Lawrence Ma Yung-yi, chairman of the Diamond Federation of Hong Kong, China. He is also executive director of the Lee Heng Diamond Group.
'After World War II, Hong Kong was in a unique position - it was a free port, there was no sales tax, and the banking industry was developed,' Mr Ma says. 'These qualities made Hong Kong ideal as a wholesale centre, and local companies often served as middlemen.'
Hong Kong jewellery manufacturing, including polishing and casting, began in the 1980s. Previously, the main industry activity here was polishing. While experimentation with manufacturing proceeded, local companies began expanding north and establishing factories in the mainland.
China has the second biggest market in terms of polishers (India leads in this aspect), with between 18,000 and 20,000 skilled artisans. This level of growth has been achieved in about 18 years, an indication of the industry's pace of growth.
Other polishing centres are New York, Tel Aviv and Antwerp.