Rising importance of the Asian art market reflects in Hong Kong's emergence as a new hub

Bonhams and Christie’s just recently offered roughly £140 million worth of Chinese art & antiques in a four-day jamboree. Adding flavor to the event was ArtHK, a popular fair of contemporary art that attracted dealers.

On the other hand, ART HK, an annual art event, welcomed more than 150 of the world’s established galleries from nearly 30 countries and over 46,000 people. In a span of mere three years the fair has established itself as a must-visit fixture on the global art calendar. Art world watchers and insiders now recognize the importance of the Asian art market as part of a long term approach as the political and economic balance of power shift ever eastwards.

The rise of Hong Kong signifies this changed mindset. It is now among the most significant art markets globally after New York and London in terms of auction turnover. Favorable tax regime in contrast to mainland China reaffirms its rising status in the art arena. Underlining the trend, Colin Gleadell of The Telegraph UK notes:

“Since China entered the WTO, its art market has grown at a staggering rate. It rose by 200 percent to some £2.1 billion per annum between 2004 and 2009, overtaking even France. Add the Hong Kong sales and there is a combined auction turnover of £3.6 billion, which is 14 percent of the global art market. During the global financial crisis of 2008-09, mainland Chinese buyers emerged as a dominant force.

"While America’s wealthiest lost 20 percent of their cumulative wealth, China’s increased theirs by 84 percent. Currently, there are more billionaires in China than in any other country, apart from America, and art is just one of the commodities they are looking to invest in.”

Emphasizing the power shift, Sotheby’s Kevin Ching notes that the Chinese buyers have now become aggressive buyers. Why and how, we shall check in the next post.