A piece from Poly International Auction Company's 2009 and 2011 autumn auctions Photo: CFP
Despite the negative impact that the worldwide economic crisis had on China's auction houses in late 2008, the domestic auction industry made a quick recovery by the autumn season in 2009. By the spring auction in 2011, each of the four seasons following the crisis saw sales increase over 100 percent, with the 2011 spring auction as the high point since the 2007 autumn auction.
During last year's spring auction alone, the country's 10 largest auction companies, including China Guardian Auctions Company, Poly International Auction Company, Beijing Hanhai Auction Company, and Xiling Yinshe Auction Company, collectively raked in 20.51 billion yuan ($3.26 billion).
The year of 2012 is expected to bring more triumphs, with the domestic market attracting international attention.
Rising profits
Paintings and calligraphy pieces were the heaviest hitters in last year's auction market, and contemporary works composed the majority, with 207 out of the 348 paintings sold at auction coming from contemporary artists, earning the industry 5.749 billion yuan.
Experts believe that in 2012, paintings and calligraphy works will maintain their dominant position in the market for the following three reasons: First, painting and calligraphy are traditional Chinese art forms that have a high cultural value in society. Second, while traditional Chinese ceramics have performed well at auctions abroad, paintings and calligraphy works have concentrated their business in China. Third, new buyers usually collect paintings and calligraphy works as they are easier for the novice to appreciate.
A piece from Poly International Auction Company's 2009 and 2011 autumn auctions Photo: CFP
Elite works in demand
In the 2011 spring auction season in China, 5,726 works had a final price of over a million yuan, up from 3,466 in 2010. Among the 5,726 pieces, 533 were sold for over 10 million yuan (up from 345 in 2010), 45 were snatched up for over 50 million yuan (up from 34 in 2010), and 13 fetched over 100 million yuan (2 more than in 2010). This was the best performance of top-priced items in 19 years.
In 2012, works from famous artists and historical relics are expected to become more popular among customers, as more art buyers raise their paddles in hopes of a secure investment. For these investors, minimizing risk is a major concern, and in an era that sees highly sophisticated counterfeit art masquerading as originals, works that come from reliable channels are the most preferred products.
Additionally, art industry buzz helps values of the higher-priced items to increase, allowing collectors to be confident about future profits. When it comes down to it, many art buyers are flocking to the auction house because they are looking for a sound investment.