YSL Sale and the Saga of the Bronze Rat and Rabbit Heads

I dont want to go into territory already covered on the AW Blog, yet this story gets very interesting. By now most appraisers should be aware of the YSL sale held in Paris at Christie's, its record prices and the issue over the two bronze figural animal heads, one of rat the other of rabbit that were looted from China in the late 19th century. China tried to block the sale, and even threatened to sue anyone who purchased the property. China continued its pressure through the sale even though ownership, title and the ability for Christie's to sell bronzes was upheld in the French courts. The Chinese government also insinuated it would pressure Christie's during future Asian sales in Hong Kong.

The Economist is now reporting that Mr Cai Mingchao, the purchaser of the two bronze animal heads (at about $20 million each) who is refusing to pay and proudly boasted that he purposely intended to sabotage the sale might have gone a step too far. It appears the under bidder on the sale was a Chinese businessman from London, and he planned to donate at least one of the two heads to China. The Chinese government are now distancing themselves from Mr Cai Mingchao.

The Economist states Profits, as well as national pride, are at stake. After the auction, but before Mr Cai’s declaration that his bid was bogus, Chinese authorities ordered strict checks on all Christie’s exports and imports. Mr Cai, the general manager of Xiamen Harmony Art International Auction Company in Fujian Province in south-eastern China, is one of thousands of small auction-house operators who would benefit from a scaling-back of Christie’s operations. Hong Kong was Christie’s third most lucrative outpost in 2008 (after New York and London) and the company also has a trademark licensing agreement with Forever International Auction Company based in Beijing.

This will be very interesting to watch and see how the bronze heads are handled in the future. Will they be offered to the under bidder, will a private sale be arranged? Will Christie's sue Mr Cai? Will Christie's Asian sales be impacted by the Chinese government? Only time will tell. The saga is amazing, you just cant make this stuff up.

To read the Economist article, click HERE.