Core Viewpoint - The recent tax adjustments on gold and diamonds have led to increased costs for "gold-inlaid diamond" products, prompting retailers to shift towards silver alternatives and adjust pricing strategies to maintain consumer interest [1][5][12]. Group 1: Tax Policy Impact - The new tax policy, effective from November 1, 2025, imposes a 13% VAT on both rough and finished diamonds, a significant increase from the previous zero tax rate for rough diamonds and 4% for finished diamonds [11][12]. - The gold tax policy will also be implemented from November 1, 2025, until December 31, 2027, with tax benefits retained only for members of the Shanghai Gold Exchange and Shanghai Futures Exchange, affecting ordinary retailers [12]. Group 2: Market Adaptation - Retailers are adapting to the increased costs by replacing high-gold-content diamond settings with silver alternatives, indicating a shift in product offerings to maintain sales [5][6]. - Despite the cost increases, consumer demand remains strong for aesthetically pleasing products, with buyers willing to pay a premium for quality and design [6][11]. Group 3: Industry Transformation - The industry is expected to accelerate its transformation in response to the new tax environment, focusing on innovation in design and brand value enhancement to adapt to changing market conditions [1][12]. - The introduction of the GET-Diamonds platform at the expo aims to enhance transparency and efficiency in diamond trading, connecting international suppliers directly with the Chinese market [16][22].

Core Insights - The September Hong Kong Jewellery & Gem Fair is currently taking place in two major venues, showcasing over 3,000 exhibitors from 45 countries and regions, highlighting the industry's achievements in innovation and sustainability [1][2][6] - The fair features six thematic exhibitions, providing an efficient procurement platform for global buyers, with a focus on different categories and needs [3][4] - The event includes special exhibitions like the "Realm of Precious Metals" and the "Golden Jewelry Pavilion," which emphasize the latest trends and technologies in the jewelry sector [6][9] Exhibition Highlights - The fair is divided into two main venues: AsiaWorld-Expo and the Hong Kong Convention and Exhibition Centre, with specific exhibitions focusing on raw materials and finished products [3][4] - The "Realm of Precious Metals" exhibition, supported by the World Gold Council and the Platinum Guild International, features ten display areas exploring the history, cultural significance, and craftsmanship of precious metals [6][9] - The "Golden Jewelry Pavilion" has expanded this year, featuring over 40 exhibitors from various regions, showcasing the latest fashion trends and technologies in gold jewelry [6][9] Buyer Experience - Attendees have reported a highly efficient procurement experience, with a wide variety of products available, including high-quality pearls and diverse gemstone options [5][9] - The fair serves as a platform for industry networking, with various forums and discussions on sustainable practices, jewelry metals, and design trends [9][12] - New thematic areas, such as the "Men's/Unisex Jewelry Corridor," cater to evolving market trends and consumer preferences [9][12] Industry Impact - The September Hong Kong Jewellery & Gem Fair is a significant event for the global jewelry industry, promoting exchange and cooperation while enhancing Hong Kong's position in the diamond and gold jewelry export markets [12]