by Fang Zhuoran
Shanghai is developing a 4-square-kilometer zone in the historic Yuyuan area into a jewelry trade and exhibition hub, aiming to spur consumer spending and industry growth.
The “Shanghai International Jewelry Fashion Functional Zone” was outlined in a three-year plan released on May 16 by the Huangpu District government. The area is home to over 400 jewelry businesses, including flagship stores for Lao Feng Xiang, Lao Miao, and Yayi, and accounts for one-fifth of the city’s jewelry retail sales. High-end luxury stores such as Harry Winston, Graff, and Tiffany’s are also clustered in the district.
The plan includes expanding bonded warehouse operations, piloting year-round import policies linked to the China International Import Expo, and encouraging global auction houses to establish integrated venues. The district will offer subsidies, including up to 5 million yuan for international institutions and 3 million yuan for livestreaming bases.
In 2024, Shanghai’s gold, silver, and jewelry retail sales totaled 36.63 billion yuan, over 11% of the national total. The city also hosts three national-level precious metal and gem exchanges.
Officials say the zone will promote brand clustering and innovation, supporting Shanghai’s push to become an international consumption hub. The Yuyuan area, with roots in jewelry trading since the Qing dynasty, is seen as central to the plan’s success.
The initiative coincides with the 2025 Diamond & Jewelry Culture Festival, which runs through June across seven districts. Brands including Lao Feng Xiang, Chow Tai Fook, and Lao Miao are offering promotional discounts during the event.
Authorities hope the new zone will integrate retail, tourism, and cultural activities to create a modern jewelry destination and support Shanghai’s broader consumption-driven development goals.
