Hong Kong International Jewellery Show 2017

Hong Kong Convention and Exhibition Centre
Exhibition Information

We had exhibited at the Hong Kong International Jewelry Show 2017, held at the Convention & Exhibition Centre from 03/02/2017 to 06/03/2017, for 5 days.
This is the first jewellery show in this year, busiest both with exhibitors and visitors, also most influenced by the Chinese buyers. And, I was curious about this year’s trend.

The real GDP growth rate of China in 2016 is 6.7%,which is a lowest growth since 1990,and it is expected the further slowdown to 6% level in 2017.The yuan is on a downward trend.At the end of 2015, Renminbi was around 6.45 yuan against a dollar, but it became 6.95 yuan against a dollar level in 2016, and it is also expected to see further downward.Due to the depression of the Chinese economy and exchange rate problems,capital outflow from China would not be stopped.

Although the People’s Bank of China responded foreign exchange interventions, to sell foreign currencies and buy yuan, the foreign exchange reserve became US$ 2,998.2 billion level at the end of January, less than US$ 3 trillion in 5 years and 11 months; the amount reduced in one month became $ 12.313 billion. The capital outflow became US $ 44 billion in January, and it seems the acceleration of capital outflow will not stop.If the capital outflow and the depreciation of the Renminbi accelerate further, the domestic market in China will become less liquidity and may cause confusion.

The Chinese buyers, under such circumstances,I had an impression that even though the budget of purchase was decreasing because of the economy, but as the purchase willingness was still strong.As a matter of fact, this Hong Kong show in March attracted a large number of Chinese buyers overall, and I felt the buying power of Chinese was great again.Until a couple of years ago,Chinese buyers chose medium quality also, but they pay no attention to the low quality items now.However,I think that Chinese buyer is still No.1; the ability to purchase extremely high quality items, regardless of the price.

Also, in the United States, predicting Trump’s policy and infrastructure investment would boost the American economy, the trend of higher stock prices, longer-term interest rates, and higher dollar appreciation is growing. Especially it seems that the 100-day action plan to execute within 100 days, immediately after President Inauguration, is highly expected in the United States. Its contents include measures to be implemented for 7 economic relations withdrawal from NAFTA, withdrawal from TPP, specify China as the currency manipulator, starting investigation of injustice of trading partner country, deregulation of domestic energy-related regulation, elimination of policies to impede constriction of infrastructure, withdrawal of investment in the United Nations’ Climate Change Program),and also 10 measures aiming to legislate (tax reform of income and corporate tax, tax reform to prevent companies from moving overseas,promotion of energy development and infrastructure investment, educational reform,abolition of Obama Care,support for child and nursing care, illegal immigration measures, security of the community,security reform, political corruption measures).With this policy announcement,the stock market in the United States is booming.

Among them, if not only the corporate tax rate of 35% be set at 15%,but also the commitment to lower the corporate tax rate of the retained foreign income to 10% would be executed; the world money would increasingly flow back to the United States more and more. The American buyers who came this time also expressed this business confidence, they had bought unlimited regardless of the budget if the price and design matched. Although the expectation of this jewelry show was less than last year, diamonds and pearls were sold well at the airport side, so it seems inevitable that the market price would rise in the future.

The atmosphere of the jewelry show held in Wanchai was good as well.It seemed he merchandise at the high price range had not been traded like before, but the middle to low price range items had been sold more than before.Especially the IT environment is developing more than ever, and the willingness to purchase of the people who took advantage of the internet business was high.It seems that the business style of our industry will change dramatically in the future.

During the general election of the Netherlands in the month and the presidential election from end of April too May scheduled, the rise of popular compatibility with anti-EU has been told. And the possibility of the rate hike in the Federal Reserve in the United States is strong. From the above, it seems the international politics and the world economy is likely to change more and more.If the world economy would become confused, money might flow into commodities such as gold and commodities of our industry to avoid risks, and the market price might rise as well. 

We will keep our eyes on the future trend and try to stock merchandise which we can make you happy. And we will be honored if you visit us at the next jewellery fair. In addition to regular clients, we have met a lot of new customers who made many new dealings. We would like to give our sincere gratitude to who visited our booth. Thank you.