The Chinese government has added to the liberalisation of gold and diamond trading with a new set of measures designed to open up the Chinese market to platinum traders.

The metal can now be traded at the Shanghai Gold Exchange (SGE), in a reflection of the government's recognition of the popularity of platinum on the country's jewellery market.

Jewellery industry insiders speaking to Jewellery News Asia have welcomed the abolition of VAT and reduction in consumption tax on imported platinum as important steps in encouraging the market for the metal to grow.

Hu Xin Hai, vice MD of Zhejiang Sun & Moon Jewellery Co Ltd, said 'the new policy is the result of the effects of everyone in the industry. Their hard work finally convinced the government to review the regulations.

'The implementation of this important policy will undoubtedly boost the development of the platinum industry further.'

The duty payable on platinum had 'hindered the development of platinum jewellery manufacture', he said, a situation which would no longer stifle growth under the terms of the new 'legitimate, fair and orderly platform.'

He was also comfortable with the involvement of foreign interests, remarking that 'the presence of overseas companies in China will stimulate the local jewellery trade to upgrade and improve itself.'

Despite the economic depredations of SARS, the Chinese market, according to analysts, remains high compared to shrinking interest in Japan and the US.

The efforts of Platinum Guild International, which has been promoting the metal in China since 1997, cannot be discounted in the health of the market: initially publicised because of its purity, it is now being marketed in the country as a means of showing personality and individual style.