Aug 26 (Reuters) - Gem Diamonds Ltd (GEMD.L) posted a 31 percent fall in first-half pretax profit on lower revenue, and said it still remained cautious on the U.S. market.

Gems from Gem Diamonds Ltd's Ellendale, Australia, operations - Photo: www.gemdiamonds.com

However, the London-headquartered diamond producer said on Wednesday 26 August it saw a growth in demand for diamonds from China.

"At the retail end of the chain, demand for diamond wedding jewellery remains strong in the Middle East, Asia and the United States," Chief Executive Clifford Elphick said in a statement.

For the six months ended June 30, the company posted a pretax profit of $17.2 million, compared with a profit of $25.2 million last year. Revenue fell 29 percent to $117.8 million.

The group had gross cash of $120.5 million and no debt at end-June.

Shares of Gem Diamonds, whose assets are spread across nine countries, closed at 260 pence on Tuesday 25 August on the London Stock Exchange.

(Reporting by Tresa Sherin Morera in Bangalore; Editing by Jarshad Kakkrakandy)