"Shenzhen is the barometer for Chinese jewelry, Luohu is the barometer for Shenzhen jewelry, and Shuibei is barometer for Luohu jewelry." This saying fully conveys the importance of the Shuibei area to the national gold and jewelry industry. As international gold prices rise, the gold jewelry market is once again catching the attention of investors. During the May Day holiday from May 1 to 5, the Shenzhen Shuibei gold and jewelry market was very lively, and consumers showed stronger desire to buy gold and jewelry.

In the Shuibei-Buxin area, there are nearly 7,000 gold and jewelry enterprises, whose annual wholesale value reaches about 110 billion yuan ($17.1 billion), about half the national total.

“Our industry is highly concentrated. Designers, suppliers and so on are concentrated in Shuibei. This year's wedding gold jewelry is one of the main growth drivers," a manager surnamed Wu, running a jewelry business in Shuibei, told the media.

"Last year, due to the influence of the epidemic, many new couples postponed their weddings; this year, there has been a marriage surge, and new couples like buying gold, which has led to a sales rise."

In the past, the Shuibei gold and jewelry market mainly catered for wholesale customers; however, now, many stores also serve retail customers, as many businesses are pledging consumers can buy even one piece at a wholesale price.

A merchant said, "There are several jewelry appraisal institutions in Shuibei, which can guarantee quality. We have our own factory for mass production, so the price can be cheaper than the other brands. In addition, many famous brands also manufacture products here."

It is noteworthy the prosperity of Shuibei is also reflected in the performances of its listed companies. Chow Tai Seng, headquartered in Shuibei, recently disclosed that its operating revenue for the first quarter of 2021 reached 1.16 billion yuan, up 70.68% year-on-year.

Analysts said gold’s hedging function is more remarkable as the global financial market shows more uncertainties than before. It is against this backdrop that gold consumption may become higher in the future.

In addition to the wholesale market, the whole Shuibei gold and jewelry industry is also undergoing change. The Shenzhen municipal government has just issued a set of policies, vowing to take "several measures to support the gold financial development of the Luohu district", in a bid to support it to develop into a core zone of gold finance in Shenzhen.