Shenzhen: The Shenzhen Rough Diamond Exchange (SRDE) plans to expand into polished trading and is preparing to rename itself to reflect the upgrade, reports Rapaport.

The bourse is in the process of rebranding as the Shenzhen Diamond Exchange and has been trailing imports of polished diamonds since late last year, a spokesperson for the organization told Rapaport News on Wednesday.

The SRDE opened a bonded warehouse in December 2015, where rough diamonds and colored gemstones that have been shipped into the southeastern Chinese city can be held tax-free for traders to view. Through this arrangement, contractors can cut rough diamonds, and colored stones can enter the Chinese market following payment of tariffs and value-added tax.

The exchange, home to 20 members, now plans to receive polished diamonds, which will then be sent to the Shanghai Diamond Exchange as per import procedures.

Shenzhen is the biggest jewellery hub in China, with around 90 percent of the diamonds the country consumes passing through the city’s traders or jewellery manufacturers, according to Liu Jianhua, deputy secretary-general of the diamond division at the Gems & Jewelry Trade Association of China. Liu spoke at a diamond-industry forum in the city last week.