Editor’s Note
The lab-grown diamond sector saw a notable rally today, led by Huanghe Cyclone and several other key players. This surge appears driven by multiple catalysts, including recent technological advancements and shifting consumer preferences. While the momentum is strong, investors should consider the sector’s volatility and long-term sustainability when evaluating these gains.
Today, the lab-grown diamond sector experienced a short-term rally. Huanghe Cyclone surged to the daily limit, while Power Diamond, Yifeng Diamond, Sifangda, Chaoshengji, and Guoli Shares followed with gains.
On the news front, two key events are driving sentiment. Firstly, the Belgian High Council for Diamonds (HRD) announced it will cease issuing grading certificates for lab-grown diamonds starting in 2026, a move viewed as a containment strategy by the natural diamond industry. Secondly, this event coincides with the recent announcement by the Gemological Institute of America (GIA)—the global authority in gemstone certification—that it will no longer use the internationally recognized 4C grading system to evaluate lab-grown diamonds. This has sparked market expectations for an independent development path for lab-grown diamonds.
Analysts noted that while the HRD’s decision to stop certification clearly signals the natural diamond industry’s intent to suppress, it may conversely accelerate the process of lab-grown diamonds breaking away from the traditional system, pushing the market to establish independent value standards. Simultaneously, the strong growth performance of Chinese companies provides solid fundamental support, enhancing investor confidence in the industry’s prospects.
Relevant lab-grown diamond concept stocks are as follows:
• Huanghe Cyclone: Surged to limit up today. As a core producer of gem-quality synthetic diamond grit, it benefits from high-temperature, high-pressure technology and strong performance growth.
• Power Diamond: Gained notably, focusing on lab-grown synthetic diamonds.
• Yifeng Diamond: Participates in the lab-grown diamond industry chain, leveraging advantages in chemical vapor deposition (CVD) to provide diversified solutions.
• Sifangda: Involved in R&D and production of synthetic diamonds.
The lab-grown diamond sector has declined 2.24% cumulatively over the past five trading days, during which main force funds net sold 388 million yuan. Within the sector, China Gold, Mengkaron, Yejian Machinery, Sifangda, and Boyun New Materials ranked among the top net sellers by main force funds, with net outflows of 97.6953 million yuan, 71.4854 million yuan, 70.3068 million yuan, 67.7302 million yuan, and 43.7279 million yuan, respectively. This fund outflow trend reflects recent market caution. However, today’s rally indicates a short-term shift in sentiment is turning optimistic. Investors need to watch for potential reversal signals in fund flow direction.