Supply chain financing grows fast and becomes a key path for small-to-medium enterprises' financing. This paper uses cash-cash flow sensitivity model to study if they are facing financing constraints or have been mitigated based on 74 light manufacturing companies listed in China's stock market with the results showing an outstanding financing constraint, which has yet been mitigated as supply chain financing develops. This conclusion verifies that supply chain management in China's gems & jewelry sector is lagging, deficient in basis for financing business. The big players are not willing to take the responsibility to support the small-to-medium ones. Suggestions are presented to use supply chain financing for China's gems & jewelry sector.

China's jewelry industry has gained a speedy growth over 40 years. The sales revenue of China's jewelry industry reached a record 550 billion RMB in 2017, it becomes a vital part in China's consumption. However, issues exist such as low market concentration, product homogenization and intense competition. This paper studies their financial data and operation information of 13 jewelry companies listed in Shanghai stock market, analyzes the current status and issues in China's jewelry industry, and presents suggestions for China's jewelry industrial development.