Hong Kong Auction Market Growth

We know that Christie's and Sotehby's have been focusing on the Asisan market, particularly through Hong Kong sales as well as new mainland Chinese sales.  The NY Times is reporting the Hong Kong market for smaller niche market auction houses is growing as well.  Not surprising given the strength in the market for Asian art as well as a need to fill the growing middle market in Asia.

The NY Times reports

In the past five years, companies including Spink Phila China, Tiancheng International and Bonhams have been hosting small, narrowly themed sales to capture a larger share of the Hong Kong market for contemporary Chinese art, watches and jewelry, wine and stamps.

While these events may lack the pomp of the spring and autumn auctions held by Christie’s and Sotheby’s — so large in scale that they are held at the Hong Kong Convention and Exhibition Center, with previews attracting thousands — the new contenders are quickly finding their own market positions. The city even has a new midmarket player, Gresham’s, which held its first auction in August and has offerings as diverse as carpets and silver.

Chinese art is a highly speculated category in Hong Kong, and not a negligible one on the world stage. In a market report for the European Fine Art Fair this year in the Dutch city of Maastricht, the economist Clare McAndrew says auctions are the main driver of growth in the Chinese art market, accounting for almost 70 percent of sales. The Maastricht fair, better known as Tefaf, has even announced that it is in talks with Sotheby’s China — via its partner, the Beijing GeHua Art Company — to host a high-end art and antiques fair in Beijing in 2014.

“Hong Kong represented 4 percent of group sales in 2008 and are now 18 percent of sales and growing,” François Curiel, president of Christie’s Asia, said. “Chinese paintings led the market in Hong Kong this year, with sales of $130.9 million, compared with $84.9 million for the same period a year ago.”

While Sotheby’s and Christie’s still maintain a strong hold on the market, two Chinese auction houses, China Guardian — the first auction house in mainland China, established in 1993 — and Tiancheng International, are increasing their market share.

“Once I was in London visiting Sotheby’s, and I was told they are jealous of China Guardian since some of their international markets are narrowing while our market is expanding,” said Kou Qin, director and vice president of China Guardian. “China’s economy is booming while other countries have been depressed over many years.”

But there are significant differences between the mainland and Hong Kong.

“We pay particular attention to Hong Kong because it has easy contacts with international markets and very close relations with mainland China,” Mr. Kou said. “It is the first stop for us and we’ve been keeping an eye as early as 10 years ago, but the Asian financial crisis hindered our plans,” he explained. Last October, China Guardian held its inaugural auction outside mainland China, generating 455 million Hong Kong dollars, or roughly $59 million, in sales, with a strong focus on Chinese paintings, calligraphy and furniture.

When the Hong Kong-based Tiancheng International was founded in 2011, it specifically had the Chinese art market in mind. The company set up its exhibition hall, sales room and offices in the I.M. Pei-designed Bank of China building in the Central district of Hong Kong, and is headed by the former China director of Christie’s, Wang Jie.

Source: The NY Times