Indian diamantaires, based in Antwerp, Mumbai, Surat and Hong Kong, are concerned about reports of the bankruptcy of three or four companies in China, Hong Kong and Tokyo. According to some information, these companies have not paid Indian traders debts totaling 18 billion rupees. In addition, the financial position of at least six other firms can be called unsustainable, the Times of India said.
Indian diamantaires from Surat, Mumbai and the Hong Kong-based firms involved in the supply of diamonds began to panic.
Warnings of market participants about bankruptcies and weak financial position of Hong Kong companies can serve as an omen of huge losses of diamond traders.
India annually exports diamonds worth about $ 28 billion, of which about $ 8 billion is exported to Hong Kong. World gold prices in 2014 fell sharply compared to the previous year. This could cause the bankruptcy of jewelry companies that could not survive in the current market conditions.
Vipul Shah, Chairman of the Gems and Jewelery Export Promotion Council (GJEPC), said: "Reports of the bankruptcy of jewelry companies in China and Hong Kong with the speed of lightning spread across the market. However, we still have not received any official information on this matter. "