How the Chinese art market is thriving?

The growing demand for Chinese art in China was evident at the recent Maastricht Art Fair. At the Netherlands, one dealer according to media reports sold four precious pieces of imperial jade at more than the expected price. At the just concluded Asia Week in New York, collectors from Hong Kong and mainland Chinese acquired six pieces of Ming & Qing dynasty ware.

As People’s Daily points out, domestic art auction sales of what’s termed ‘cultural relic work’ last year amounted to a whopping $4.78 billion, up almost 38 percent from 2009. A large chunk of these happened in Beijing. On the other hand, Sotheby’s and Christie’s reported $685 million and $722 million, respectively, from their HK sales last year.

Last year, Chinese buyers bought roughly 23 percent of all the lots on offer at Sotheby’s worldwide auctions. The share was just about 14 percent in 2009 and merely seven percent in 2008, indicating the phenomenal growth. Transaction charges in Europe is one important reason why the auction market is gradually shifting to countries like Hong Kong. No charges of this sort are levied here.

Also, a lot of money is chasing Asia, searching for newer avenues and classes of investments from international investors. However, the burgeoning wealth within China itself primarily has boosted the art market. The riches are arising primarily from real estate profits and stock dividends that act as the key driving force.

This is equally abetted by a rapid shift in the cultural outlook. The Chinese government does not anymore frown at contemporary and modern art. Corporate houses now consider the act of collecting art a part of ‘patriotic’ duty. The resultant growth of its domestic art auction market has been dramatically exponential in nature. Awareness of art is clearly growing in China, helping the cause. Biennales are a regular activity in many leading cities, exposing the masses to latest art trends.