The Guangzhou Diamond Exchange was formally opened on Tuesday during the Plenary session of the 2014 Kimberley Process Certification Scheme.

Guangzhou is a major diamond processing base in China and a regional diamond trading center, with Conghua and Panyu districts in the city housing large diamond processing facilities, said Guangzhou Mayor Chen Jianhua.

Diamond processing volume in Guangdong accounts for more than 70 percent of the national total, said Zhao Yufang, deputy governor of Guangdong.

Rough diamond imports and exports through the Chinese mainland and Hong Kong stood at 53.15 million carats, or $5.29 billion, last year, only after the European Union, India and United Arab Emirates, according to Guangdong Entry-Exit Inspection and Quarantine Bureau.

Shanghai Diamond Exchange was launched in 2000.

The Kimberley Process is a joint government, industry and civil society initiative to stem the flow of conflict diamonds, or rough diamonds used by rebel movements to finance wars against legitimate governments.

China was vice chair of Kimberley Process last year and is chair this year.