Diamond jewellery sales in China increased by 5.7 per cent in the first half of 2004, according to a new survey by the Diamond Trading Company.

In terms of pieces, the sale of diamond jewellery was up four per cent during the period, compared to the previous year, however larger retailers have reported sales growth of between 12 and 15 per cent.

It is thought the market has been boosted by advertising and promotions, a bigger range of creative designs and improved consumer spending power.

The majority of respondents (28 per cent) felt advertising and promotions had been the biggest factor in the positive sector performance.

However, some felt uncontrolled pricing and counterfeits were particular issues that could hinder the diamond jewellery market.

Platinum jewellers are already targeting China's bridal market this year, since platinum proves to be the metal of choice for engagement and wedding rings.

Diamonds above 20 points (0.2 carats) tend to be set in platinum in China.