Peripheral Visions: Looking at the Asian Art Market

February 2010

Reflecting on the decade just past, one of the most significant features was the meteoric rise of  the Asian art market which saw international art institutions, galleries and auction houses shift into the uncharted albeit thriving, Asian market.

Ignited in 2005, the boom in contemporary art from developing Asian economies saw Asian artists topping prices commanded by the European Old Masters. The Chinese art market, in particular, was among the most speculative of the emerging markets; with contemporary Chinese art facilitating a quick, high return investment for buyers. By 2006, Sotheby's and Christie's had sold a total of $190 million of Asian contemporary art, up from $22 million two years prior.  In 2007, art market commentator Jianping Mei said: "The Chinese contemporary art market now is like American contemporary after World War II. It has huge growth potential. Back then, American artists were new to the old money in Europe. It’s the same with today's Asian contemporary art."

Artists such as Fang Lijun, Zeng Fanzhi, Yue Minjun & Zhang Xiaogang may not have been well known, however, soaring prices cemented their names firmly in the minds of market watchers. In 2007, three Chinese artists - Xiaogang, Minjun and Fanzhi - made the global top 10 bestsellers at auction houses. Works by just one of those, Zhang Xiaogang, raked in $44 million at auction in 2008 alone. Whilst, Fanzhi's Chinese revolution themed 'Mask Series 1996 No. 6' achieved the record price $9.7 million at Christie's in Hong Kong.

Following the economic downturn in 2008, the soaring Asian contemporary art market underwent a natural correction. Whilst the imminent domination of the world art market by Chinese contemporary artists was subdued, Chinese traditional art emerged as one of the strongest markets globally during the recession. According to market analysts, "the global financial crisis set off a cultural revolution among the mainland's fledging collectors, who placed fresh value on their own rich imperial heritage, expressed in jade, porcelain and wood furnishings". Since Sotheby's and Christie's established themselves in Hong Kong, they have reaped the benefits of this spending trend and in a few short years have turned the island financial centre into the world's third largest auction market- (following after New York and London). In October 2009, sales of Chinese traditional art fetched an impressive $HK1.3billion ($166 million).

China's two leading mainland auctioneers - China Guardian and Poly - reportedly sell between $250 million and $300 million a year, equal to Christie's Hong Kong sales. These results have encouraged, Francois Curiel, president of Christie’s Europe since 1999 and Christie’s France since 2000, to move to Hong Kong as the new president of Christie's Asia. "I’m off to Hong Kong to try and develop the Asian market, our biggest market at the moment," he says, "More important is that the region provides buyers for our sales worldwide," Curiel points out. "In Impressionist and modern art, contemporary art, jewellery, Old Masters, and 20th-century decorative arts, our biggest buyers often come from mainland China, Taiwan, Hong Kong, and Indonesia." 

The blossoming Asian region has also developed itself as a hub for biennales and art fairs. The most recent and significant of which being the Hong Kong Art Fair (ART HK). In just one year, ART HK has positioned itself as a key event on the international art calendar. With its debut in May 2008, ART HK reported sales of $20 million, displayed works from 101 international galleries and drew 20,000 attendees.

HSBC Private Bank's Art & Design Advisory partner, 1858Ltd will be opening their Hong Kong office in the first quarter of 2010.

To learn more about the HSBC PB Art & Design Advisory service please visit our design and art advisory service page or contact the dedicated helpdesk on:

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