Art market still strong amid financial crisis

(Xinhua)
Updated: 2009-03-30 18:44

The biggest sale at the auction house was of a painting of 46 donkeys by mainland artist Huang Zhou. It went for 1.51 million yuan.

But the auction house didn't have many large purchases like that one. Instead, just like Beijing Poly, Deng said more low-price art works were the key to good sales and high participation from buyers.

"Judging from the situation in the first three months of this year, the art market will not collapse at all," Kou said.

However, he admitted the financial crisis has indeed affected some Chinese art owners who have been more reluctant to sell their works, saying they would rather wait for a better time.

Foreign art owners seem to be doing just the opposite. In February, the company was stunned while soliciting auction items in New York and Tokyo for the first time.

More than 1,000 people came to consult with Guardian Auctions every day.

"Overseas owners think the Chinese market is so far so good -- compared to many western markets."

Kou said it will be difficult to beat sales from 2008, but he remained hopeful as he estimated the company would still do 80 percent of last year's business.

Not everyone shares that optimism.

Gan Xuejun, president of the Beijing Huachen Auctions Co., Ltd., was conservative about the Chinese art market in 2009.

"Sales won't be so good in the first half of this year as owners are reluctant to sell and buyers tend to wait for better economic times."

Huachen's auction started March 27, but sales figures were not yet available.

Gan said now is a difficult period for auction companies which are having their strengths and ideas of management tested.

"In the past five years, the Chinese art auction market has developed a bit too quickly. Many problems exist in its management and many practitioners were not qualified. After this round of 'survival of the fittest', the industry will become more regulated and professional," he said.

Although no widespread damage to the market has been done so far, niche artworks are taking a bit of a hit.

"Many western owners take interest in contemporary art, especially oil paintings. The crisis has had the most obvious impact on this category. The market itself has many bubbles and what the crisis is doing now is just squeezing them out," Ma said.

Contemporary art has never been a big part of the Chinese art market.Traditional paintings, calligraphy, books and porcelains remain dominant.

"These art works are always the safest investment objects for Chinese buyers," Ma added.

All three auction house employees believed any impact from the economic recession would be temporary. They said arts were still rare resources. As the country's economy keeps growing, more people will take interest in collecting, which will stimulate the art auction market.

"As long as China's economy keeps developing and society remains stable, the art market will do just fine," said Kou.

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