China's jewelry sector is expected to grow 58 percent in five years as consumers' incomes rise on the back of country's robust economy.

Sales of diamond, gold, platinum and other jewelry are likely to top 300 billion yuan (US$38.9 billion) in China by 2011, Yang Sisan, secretary general of Gems and Jewelry Trade Association of China, said yesterday in Shanghai.

"China's jewelry market will post a strong growth, higher than economic expansion in the future," he said.

The country's jewelers raked in sales of 190 billion yuan in 2006, up from 2005's 140 billion yuan, or a year-on-year rise of 36 percent, said the Beijing-based association whose 1,000-plus members account for up to 80 percent of market share.

"The market is showing segmentation with high-end jewelry sales rising rapidly," Yang said.

Sales of big diamond, high-end jade pieces and other precious stones like sapphire and ruby are also rising.

For instance, consumers only bought 0.2 carat diamonds before, but now sales of one carat diamonds are quite common.

The reduction last year in the value-added tax on imported diamonds from 17 percent to four percent will also help boost the market in the country.

Besides, China's jewelry exports are set to boom as the country's ability to process improves, Yang noted. China's jewelry exports are likely to top US$30 billion in five years, up from last year's US$6.87 billion, he said.

At present, more than 95 percent of Hong Kong branded jewelry are processed in China's mainland, he noted.

However, the mainland still lacks talents in the industry, which may hurt its development, jewelers said.