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We had exhibited at the Hong Kong Jewelry Manufacturer’s Show 2015 from 26/11/2015 to 29/11/2015 for 4 days．
A risk of the world economy has been enhanced by the slowdown of the China’s economy and speculation of the raise of the U.S. interest rate, and reverse flow of investment money from the emerging countries begun． Then, price down of three financial assets, such as currency, stock and the bond in emerging countries, has been accelerated. In particular, it is becoming obvious to see much depreciation of their currency in politically unstable countries. Along with world globalization of finance, a large amount of money goes across the countries instantly, and it raises financial instability．
Also by the downturn in the global economy, the demand for resources such as iron ore and crude oil is dull. As a result, the economies of resources exporter like Brazil, South Africa and Russia has been greatly pushed down． Especially South Africa’s economic downturn does have a great impact on our industry, as a major platinum producing country. Decline in price of platinum cannot be stopped, due to the anticipation of further depreciation of South African Rand in addition to the worldwide automobile sales slump. And, gold price has become unstable influenced by platinum price also. It seemed a fund flow out from the gold market, for the reason of neither no accrual nor no allotment, even if possessing it．
Our industry is in chaos due to the decline of platinum price, moreover the diamond price which has been unstable from earlier．China’s economy is also suffering from 4 trillion Yuan investment rebound because a huge stimulus measure has been carried out after the Lehman shock up to now by investment-led policy. Even though economic scale and productive capacity had been expanded by large investment into capital and real estate, a lot of companies are suffering from deficit, due to excess investment or oversupply．If price competition intensifies, price continues to decline significantly and to make profit would become more difficult even if sales amount is maintained． Then there will be no choice to reduce capital investment one after another, and it can be said that 4 trillion Yuan investments was mostly useless． Caused by the Chinese stock market crash and large explosion of Tianjin, the induction of the Yuan depreciation has been strengthened in order to stop the economic downturn. It can be said that reflects the China’s top priority policy to raise the price competitiveness of China’s export, the expansion of employment, increase domestic consumption and to support the stock price.
However, the possibility of devaluation of currencies in other countries will be intensified by the weaker Yuan. In particular, Germany, South Korea, Taiwan, Malaysia, Thailand, Australia and New Zealand are largely depending on export of their main product to China. And, they might devalue their currencies to avoid being unfavorable against weak Yuan. If such currency devaluation starts, it has an impact to the U.S. economy caused by stronger dollar rate against the emerging nations’ currency．Then it induces a slowdown of the U.S. economy which has been an engine of the global economy so far and it might push the world economy into the new economic slowdown period also. In addition, also it concerns the change in global economy if the U.S. practices the rise in interest rate which has been postponed．
This jewelry show was held under such situation, and had the impression that the atmosphere was not so good. The impression which had left on me the most was that the number of Chinese buyers had been decreased compared to the previous shows. China’s current real economy seems to be quite serious, and most of Chinese buyers answered their sales amount had fallen to half or one third when I asked them about the situation．
They explained the sales of luxury item were bad and it had made sales amount smaller．Hong Kong is also receiving the affect from China’s economic slowdown, because the number of visitors from China has plummeted. And, the most of the exhibitors from Hong Kong told me that this year’s business performance was lower than the previous year. But there is also a bright side． There were quite number of people who were willing to try out new items to overcome this difficult situation, among visitors． And they were very positive．
Hong Kong is also about to change significantly. One of the largest projects in the world to build the Cultural District, which form art, education and public space at the 40 hectare’s landfill site at West Kowloon, has been advancing． And, the terminal station of Guangzhou-Shenzhen-Hong Kong Express Rail Link is under construction at the just north of this cultural district, also． It is predicted that 99,000 passengers use per day, and become one of the largest subway in the world． It is prospected to open in 2017, and then traveling time between Hong Kong to Guangzhou would become 48 minutes from 100 minutes． Furthermore, it is also estimated that the economic development around the Pearl River Delta region would be accelerated, if Hong Kong-Zhuhai-Macao Bridge opens as planned in 2016.
In addition, the construction of cruise terminal, sports complex and so called smart city has been being carried out in the vast area total of 320 hectares at the Kai Tak International Airport site (KTD),aiming to finish at 2019． As above, Hong Kong has been made closely integrated development in combination with the urban transport infrastructure, and I think that Hong Kong would gain international competitiveness and attractiveness as a leading city among Asian． I also think it is important to change by capturing the new wave, and not to judge by the current situation．
This was the last jewelry show of this year． Although we had experienced the big environmental change since summer, we made it through the year with your royal patronage. I think next year is expected to be a tumultuous year, but we would like to overcome together with you. We would like to give our sincere gratitude to our entire client who visited us at this show under such harsh circumstances. And we are looking forward to meet you at the show next year. Merry Christmas & A happy New Year．
