Your Offshore Guide
Offshore Guide
Gold Trading HK
The jewellery market
The jewellery market in Hong Kong has been developing from strength to strength. There are more than 1,800 jewellery retail shops and 1,100 manufacturers engaged in the industry which fabricated 91 tonnes of fine gold in 1994. Aside from the higher domestic demand, the booming tourist industry and the increased export trade have contributed significantly to the growth.
Hong Kong is the world's third largest exporter of carat jewellery after Italy and Switzerland. The industry focuses more on fine jewellery incorporating precious and semiprecious stones, set in yellow and white carat gold and platinum. Diamonds, rubies, sapphires, emeralds, jade, cultured pearls and opals are very much in demand, although point-size diamonds remain the most popular items. These stones are imported into Hong Kong from various countries including South Africa, Belgium, Myanmar, Thailand, Russia, Sri Lanka, and China.
With the high quality of craftsmanship and innovative contemporary designs, manufacturers in Hong Kong are well placed to produce different types of jewellery articles to suit individual taste and affordability. The products have broadened greatly in recent years, ranging from high fashion carat jewellery to chuk kam (pure gold) adornments and figurines. Gem-set jewellery articles in the medium price range are the best selling items which include rings, earrings, necklaces, bracelets, pendants, brooches and cufflinks.
With the aim of stimulating the design of contemporary diamond jewellery for everyday wear for today's modern women, De Beers Diamond Information Centre held a jewellery design contest in 1994. The price of the articles designed was to be within the range of US$500/1,500 each. The result was highly successful with the participation of more than 500 contestants. A number of creative designs were submitted and received Certificates of Merit. Five winners were awarded a trophy each from De Beers.
In view of the success, it was decided to hold the 1995 Diamond for Modern Women Design Competition (DFMWDC)jointly with the Diamond Importers " Association (DIA) who have for the last 21 years Beers supported and sponsored their own jewellery design competition. The contest was also expanded to include all the East Asian markets. A total of 643 entries from 12 countries were received,the final judging will be held in late 1995 in Hong Kong. Competition of this nature has provided vast support to enhance the design of jewellery articles produced in Hong Kong.
Most of the jewellery manufacturers in Hong Kong are small to medium in size, employing 10 to 100 workers. However, some of the manufacturers also engage in the refining, retailing and export business and their operations are much larger in scale. Chow Sang Sang Holdings International Limited (CSSH), for example, is a publicly listed company and the CSSH group operates a jewellery manufacturing plant, an electrolytic gold refinery and a gold assay laboratory (under the Hong Kong Laboratory Accreditation Scheme). Additionally, the group owns 25 retail shops and has established a few subsidiary companies to undertake business transactions in the field of bullion, securities and futures dealing. Currently, more than 1,100 people are employed by the CSSH group.
The other jewellery companies which are listed in the Hong Kong Stock Exchange include Continental, King Fook, Fu Hui, Rhine and Tse Sui Luen. The number of establishments of the industry is close to 1,100 with a total workforce, comprising skilled and unskilled labour, of nearly 12,000. The majority of the manufacturing plants are operated by local Chinese people in Hong Kong. About 15 of the establishments are owned by overseas investors, mainly from Japan and USA.
The high quality of traditional Chinese craftsmanship is well accepted in the world. In the early stage of development of the jewellery industry in Hong Kong, handcraft was the main manufacturing process. However, the technique continues to improve with the support of rapid infrastructure development in Hong Kong.
Since the mid 1970's, the technology has greatly advanced through joint-venture projects with foreign institutions specializing in the field of jewellery manufacture. Most of the jewellers in Hong Kong now apply various techniques of die-casting and stamping for mass production. Vacuum casting and electroforming are employed to produce precise hollow gold jewellery and adornments in order to reduce the weight of the article.
The Hong Kong Productivity Council has recently developed a process for electroforming pure gold for the production of chuk kam articles in one piece without any soldering. This process is best applicable to making traditional Chinese statues. Chuk kam figurines representing prosperity, happiness and longevity, for example, can be produced more efficiently by an electroforming process.
The combination of traditional Chinese craftsmanship and modern technology has greatly improved the quality of jewellery production in Hong Kong. This is one of the key factors contributing to the success of the industry.
In order to exercise more stringent quality control, the Trade Descriptions Ordinance was enacted by the Government in 1981. The Ordinance makes special reference to goldware with the following key clause:
"A trade description which indicates any articles (other than an article of pure gold) is of gold shall be a false trade description unless the article consists solely of gold alloy and (i) contains not less than 8 carats of gold; or
(ii) bears a mark clearly indicating in carats by number or by number and the letters "k", "c", or "ct", the fineness of the gold content; or
(iii) bears a mark clearly indicating in parts per thousand the fineness of the gold content."
A schedule to the Ordinance defines the fineness of gold equivalent to each number of carats. Steps were taken in the mid 1990s to review the feasibility of marking each individual piece of jewellery and to introduce a compulsory hallmarking system which will enhance Hong Kong's position as one of the leading jewellery manufacturing centres in the world.
In the United Kingdom, for instance, it is required by law that gold wares must be made in one of the legal standards of fineness and must be hallmarked by the Assay Offices. The authorized standards are 22, 18, 14 and 9 carats of fine gold in every 24 parts. Given below are some of the British standard hallmarks.
Since the beginning of the current decade, manufacturing facilities have been established in China by jewellers in Hong Kong in order to take advantage of the lower labour costs and to increase the competitiveness of the export trade. However, this establishment is limited to the production of jewellery articles in the lower price range due to a number of factors, particularly in the field of infrastructure development.
With the objective of improving manufacturing skills, the World Gold Council has been actively organizing seminars and training courses for jewellers in Greater China (China, Taiwan and Hong Kong). In 1994, the Council held separate seminars in these places to introduce the 1994-95 Asian Gold Trends. Specialists from Italy were invited to conduct these functions.
To further extend the programme, a design competition for chuk kam jewellery was held in Hong Kong, Taiwan and China individually. The winners of these contests were then invited to participate in the 1994 Asian Chuk Kam Jewellery Design Competition. The result was highly successful.
The export boom of gold jewellery made in Hong Kong has continued unabated since the early 1980s and jewellery manufacture has become the sixth largest industry in the territory. In respect of the local consumer market in Hong Kong, the infrastructure for marketing and distributing different categories of products has been well developed. Hundreds of retailing shops are established in the island of Hong Kong, Kowloon and the New Territories. Chow Sang Sang, Chow Tai Fook, Debera Jewellery, Henry Jewellery, Just Gold, King Fook, Lane Crawford, Larry Jewellery and Tse Sui Luen are currently the most active suppliers.
Most of the shops are open until 9.00 p.m. daily and provide excellent service to customers. Through the extensive sales network, jewellery products are sold to local residents in Hong Kong and visiting tourists from different parts of the world. According to the Hong Kong Tourist Association (HKTA), jewellery is the second most popular consumer item bought by tourists visiting Hong Kong. In 1993 sales amounted to HK$5,710 million which occupied 9.8% of total spending by visitors. The value continued to increase in 1994 and totalled HK$6,900 million.
Despite accelerating inflation, Hong Kong remains a competitive place for tourists. In 1994, 9.3 million visitors came to Hong Kong and spent a total of HK$62,500 million, an increase of 7.1 per cent over the record in 1993. Spending by tourists from China increased substantially in the year and amounted to HK$10,600 million. Taiwan remained on the top of the list with a total spending of HK$13,800 million.
Statistics released by HKTA also revealed that money spent on shopping by tourists accounted for more than 50% of the total spending. In 1994, the per capita spending by Japanese, Taiwanese and Mainland Chinese visitors continued to increase and amounted to HK$8,444, HK$8,311 and HK$5,469 respectively. The trend indicated that the consumption of gold jewellery by tourists from the above countries, particularly China, stepped up considerably in 1994.
In order to increase the confidence of the consumers, members of HKTA (members only) are entitled to display the logo (below) of the association in their shops. The logo signifies members' commitment to provident good service and value and upholding certain ethical standards.
The higher spending of Asian tourists visiting Hong Kong has boosted the offtake of chuk kam jewellery and adornments. These products are sold at the fine gold prices fixed every morning by the Hong Kong Jewellers' and Goldsmiths' Association plus manufacturing charges which are relatively low, averaged at about 8% over the intrinsic value of gold. Over the last few years, chuk kam jewellery articles made with more innovative designs and better finish have been gaining popularity, particularly among the younger population in Hong Kong. Despite the considerably higher mark-up, ranging from 20% to 30% above the gold price, overall sales of these products have been increasing steadily.
The official domestic exports and local sales of jewellery products manufactured in Hong Kong amounted to HK$12,400 million in 1994, making useful contribution to the Gross Domestic Product of Hong Kong. It is beyond doubt that the existing establishment of the industry will foster further growth in the years ahead.
The jewellery market in Hong Kong has been developing from strength to strength. There are more than 1,800 jewellery retail shops and 1,100 manufacturers engaged in the industry which fabricated 91 tonnes of fine gold in 1994. Aside from the higher domestic demand, the booming tourist industry and the increased export trade have contributed significantly to the growth.
Hong Kong is the world's third largest exporter of carat jewellery after Italy and Switzerland. The industry focuses more on fine jewellery incorporating precious and semiprecious stones, set in yellow and white carat gold and platinum. Diamonds, rubies, sapphires, emeralds, jade, cultured pearls and opals are very much in demand, although point-size diamonds remain the most popular items. These stones are imported into Hong Kong from various countries including South Africa, Belgium, Myanmar, Thailand, Russia, Sri Lanka, and China.
With the high quality of craftsmanship and innovative contemporary designs, manufacturers in Hong Kong are well placed to produce different types of jewellery articles to suit individual taste and affordability. The products have broadened greatly in recent years, ranging from high fashion carat jewellery to chuk kam (pure gold) adornments and figurines. Gem-set jewellery articles in the medium price range are the best selling items which include rings, earrings, necklaces, bracelets, pendants, brooches and cufflinks.
With the aim of stimulating the design of contemporary diamond jewellery for everyday wear for today's modern women, De Beers Diamond Information Centre held a jewellery design contest in 1994. The price of the articles designed was to be within the range of US$500/1,500 each. The result was highly successful with the participation of more than 500 contestants. A number of creative designs were submitted and received Certificates of Merit. Five winners were awarded a trophy each from De Beers.
In view of the success, it was decided to hold the 1995 Diamond for Modern Women Design Competition (DFMWDC)jointly with the Diamond Importers " Association (DIA) who have for the last 21 years Beers supported and sponsored their own jewellery design competition. The contest was also expanded to include all the East Asian markets. A total of 643 entries from 12 countries were received,the final judging will be held in late 1995 in Hong Kong. Competition of this nature has provided vast support to enhance the design of jewellery articles produced in Hong Kong.
Most of the jewellery manufacturers in Hong Kong are small to medium in size, employing 10 to 100 workers. However, some of the manufacturers also engage in the refining, retailing and export business and their operations are much larger in scale. Chow Sang Sang Holdings International Limited (CSSH), for example, is a publicly listed company and the CSSH group operates a jewellery manufacturing plant, an electrolytic gold refinery and a gold assay laboratory (under the Hong Kong Laboratory Accreditation Scheme). Additionally, the group owns 25 retail shops and has established a few subsidiary companies to undertake business transactions in the field of bullion, securities and futures dealing. Currently, more than 1,100 people are employed by the CSSH group.
The other jewellery companies which are listed in the Hong Kong Stock Exchange include Continental, King Fook, Fu Hui, Rhine and Tse Sui Luen. The number of establishments of the industry is close to 1,100 with a total workforce, comprising skilled and unskilled labour, of nearly 12,000. The majority of the manufacturing plants are operated by local Chinese people in Hong Kong. About 15 of the establishments are owned by overseas investors, mainly from Japan and USA.
The high quality of traditional Chinese craftsmanship is well accepted in the world. In the early stage of development of the jewellery industry in Hong Kong, handcraft was the main manufacturing process. However, the technique continues to improve with the support of rapid infrastructure development in Hong Kong.
Since the mid 1970's, the technology has greatly advanced through joint-venture projects with foreign institutions specializing in the field of jewellery manufacture. Most of the jewellers in Hong Kong now apply various techniques of die-casting and stamping for mass production. Vacuum casting and electroforming are employed to produce precise hollow gold jewellery and adornments in order to reduce the weight of the article.
The Hong Kong Productivity Council has recently developed a process for electroforming pure gold for the production of chuk kam articles in one piece without any soldering. This process is best applicable to making traditional Chinese statues. Chuk kam figurines representing prosperity, happiness and longevity, for example, can be produced more efficiently by an electroforming process.
The combination of traditional Chinese craftsmanship and modern technology has greatly improved the quality of jewellery production in Hong Kong. This is one of the key factors contributing to the success of the industry.
In order to exercise more stringent quality control, the Trade Descriptions Ordinance was enacted by the Government in 1981. The Ordinance makes special reference to goldware with the following key clause:
"A trade description which indicates any articles (other than an article of pure gold) is of gold shall be a false trade description unless the article consists solely of gold alloy and (i) contains not less than 8 carats of gold; or
(ii) bears a mark clearly indicating in carats by number or by number and the letters "k", "c", or "ct", the fineness of the gold content; or
(iii) bears a mark clearly indicating in parts per thousand the fineness of the gold content."
A schedule to the Ordinance defines the fineness of gold equivalent to each number of carats. Steps were taken in the mid 1990s to review the feasibility of marking each individual piece of jewellery and to introduce a compulsory hallmarking system which will enhance Hong Kong's position as one of the leading jewellery manufacturing centres in the world.
In the United Kingdom, for instance, it is required by law that gold wares must be made in one of the legal standards of fineness and must be hallmarked by the Assay Offices. The authorized standards are 22, 18, 14 and 9 carats of fine gold in every 24 parts. Given below are some of the British standard hallmarks.
Since the beginning of the current decade, manufacturing facilities have been established in China by jewellers in Hong Kong in order to take advantage of the lower labour costs and to increase the competitiveness of the export trade. However, this establishment is limited to the production of jewellery articles in the lower price range due to a number of factors, particularly in the field of infrastructure development.
With the objective of improving manufacturing skills, the World Gold Council has been actively organizing seminars and training courses for jewellers in Greater China (China, Taiwan and Hong Kong). In 1994, the Council held separate seminars in these places to introduce the 1994-95 Asian Gold Trends. Specialists from Italy were invited to conduct these functions.
To further extend the programme, a design competition for chuk kam jewellery was held in Hong Kong, Taiwan and China individually. The winners of these contests were then invited to participate in the 1994 Asian Chuk Kam Jewellery Design Competition. The result was highly successful.
The export boom of gold jewellery made in Hong Kong has continued unabated since the early 1980s and jewellery manufacture has become the sixth largest industry in the territory. In respect of the local consumer market in Hong Kong, the infrastructure for marketing and distributing different categories of products has been well developed. Hundreds of retailing shops are established in the island of Hong Kong, Kowloon and the New Territories. Chow Sang Sang, Chow Tai Fook, Debera Jewellery, Henry Jewellery, Just Gold, King Fook, Lane Crawford, Larry Jewellery and Tse Sui Luen are currently the most active suppliers.
Most of the shops are open until 9.00 p.m. daily and provide excellent service to customers. Through the extensive sales network, jewellery products are sold to local residents in Hong Kong and visiting tourists from different parts of the world. According to the Hong Kong Tourist Association (HKTA), jewellery is the second most popular consumer item bought by tourists visiting Hong Kong. In 1993 sales amounted to HK$5,710 million which occupied 9.8% of total spending by visitors. The value continued to increase in 1994 and totalled HK$6,900 million.
Despite accelerating inflation, Hong Kong remains a competitive place for tourists. In 1994, 9.3 million visitors came to Hong Kong and spent a total of HK$62,500 million, an increase of 7.1 per cent over the record in 1993. Spending by tourists from China increased substantially in the year and amounted to HK$10,600 million. Taiwan remained on the top of the list with a total spending of HK$13,800 million.
Statistics released by HKTA also revealed that money spent on shopping by tourists accounted for more than 50% of the total spending. In 1994, the per capita spending by Japanese, Taiwanese and Mainland Chinese visitors continued to increase and amounted to HK$8,444, HK$8,311 and HK$5,469 respectively. The trend indicated that the consumption of gold jewellery by tourists from the above countries, particularly China, stepped up considerably in 1994.
In order to increase the confidence of the consumers, members of HKTA (members only) are entitled to display the logo (below) of the association in their shops. The logo signifies members' commitment to provident good service and value and upholding certain ethical standards.
The higher spending of Asian tourists visiting Hong Kong has boosted the offtake of chuk kam jewellery and adornments. These products are sold at the fine gold prices fixed every morning by the Hong Kong Jewellers' and Goldsmiths' Association plus manufacturing charges which are relatively low, averaged at about 8% over the intrinsic value of gold. Over the last few years, chuk kam jewellery articles made with more innovative designs and better finish have been gaining popularity, particularly among the younger population in Hong Kong. Despite the considerably higher mark-up, ranging from 20% to 30% above the gold price, overall sales of these products have been increasing steadily.
The official domestic exports and local sales of jewellery products manufactured in Hong Kong amounted to HK$12,400 million in 1994, making useful contribution to the Gross Domestic Product of Hong Kong. It is beyond doubt that the existing establishment of the industry will foster further growth in the years ahead.
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