Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
Tung Kong
   2. Issuer Name and Ticker or Trading Symbol
China Direct Industries, Inc. [CDII] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
C/O CHINA DIRECT INDUSTRIES, INC., 431 FAIRWAY DRIVE, STE 200		 3. Date of Earliest Transaction (Month/Day/Year)
05/06/2011
(Street)

DEERFIELD BEACH, FL 33441		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 05/06/2011   A   2,439,640 A $ 1.25 (1) 2,439,640 (1) D  
Common Stock 05/16/2011   G(2) V 1,219,820 D (2) 1,219,820 (1) D  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Tung Kong
C/O CHINA DIRECT INDUSTRIES, INC.
431 FAIRWAY DRIVE, STE 200
DEERFIELD BEACH, FL 33441		   X      

Signatures

 /s/ Lazarus Rothstein, Attorney-in-fact   05/24/2011
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Acquired as consideration for the sale of a 50% interest in Beauty East International Ltd. by the reporting person to CDI China, Inc., a wholly owned subsidiary of China Direct Industries, Inc. ("CDII") pursuant to a Stock Transfer Agreement dated May 6, 2011 (the " Agreement") for a price of RMB 19,829,700.25 (approximately $3,049,553.50). 1,219,820 shares are issuable within 10 days of the execution of the Agreement and 1,219,820 shares within 10 days after the completion of the transfer of the 100% ownership interest in Beauty East (includes the 50% ownership held by another selling shareholder) to CDI China and completion of certain conditions set forth in Sections 4.2 and 4.3 of the Agreement which is filed as an Exhibit to the issuers Form 8-K filed with the SEC on May 12, 2011.
(2) Gift to a family member who does not share the reporting person's household. The reporting person disclaims beneficial ownership of the shares held by his family member, and this report should not be deemed an admission that the reporting person is the beneficial owner of his family member's shares for purposes of Section 16 or for any other purpose.

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