 |
 |
 |
Business Connections
Connect with Australia China businesses through our online marketplace. Job Connections
A new way for Australians and Chinese to find employment in each others countries.
Events Connections
Click images below for the many EVENTS in China and Australia
Book Connections
The site to find the many books on China.
Back Issues
| Market Madness | | Print | |
| Nov/Dec 2008 | |||
|
As prices for Chinese masterpieces continue to sky rocket, Rebecca Catching reports on how best to navigate the Chinese contemporary art market. On the second floor of Shanghai's JC Mandarin hotel ballroom collectors mill about the floor, examine precious jades couched in velvet lined display cases, but the real stars of the Sotheby's fall auction preview are Zhang Xiaogang's sullen gray portraits and Wang Guangyi's garish yellow and black canvases with images of communist workers and brand logos splashed across them.  A world apart from the sedate Chinese traditional offerings, these contemporary painters continue to make records at the auction blocks, but unless you have got an extra US$2 million hanging around, you are not likely to get a chance to own one. The heady days of the ‘90s when artists were selling canvases straight out of their studios, to people like Swiss collector Uli Sigg, for a few thousand US dollars are long gone, but that's not to say that opportunities have dried up.There are still scores of undiscovered contemporary artists, particularly those born in the 1980s, and the Chinese contemporary art market is still quite small. Experts predict that despite a recent market correction, the value of Chinese contemporary art will continue to grow as Chinese earn more and take a stronger interest in art. "If you look at the track record of Chinese contemporary art it surpasses any kind of investment," says Nicole Schoeni, director of Schoeni Art Gallery in Hong Kong, which is currently celebrating its 15th anniversary. "Yue Minjun sold a painting in the late ‘90s for HK$117,000 (A$19,000). In 2004, he was selling at auction in Hong Kong for HK$5 million (A$816,000) and this year he sold in London for HK50 million ($A8,160,000)." Though there are only a handful of artists who can command these six-digit figures, this kind of meteoric rise is quite typical of a market where unknown artists, fresh out of university, have had completely sold out shows and prices have been known to jump by RMB 10,000 to RMB 20,000 (A$1,870 to A$3,725) in a week. Though we think of China as the land of cheap goods, Chinese contemporary art is anything but cheap (see Box for sample prices). In fact the Mainland art market is a bit of a circus with different galleries quoting vastly different prices for the same work. A good way to determine the artist's value is to examine their CV as if they were a potential candidate for a position at your company. Where did they study? Was it the China Central Academy of Fine Arts in Beijing or the China Academy of Art (aka National Academy of Fine arts and Zhejiang Academy of Fine Arts) in Hangzhou? Alternatively, was it a no-name vocational college? Have they had any solo shows or retrospectives? Have they shown abroad and in museums? Have their works been collected by museums? If the answer is no, then that's not a problem, just make sure that the works are priced accordingly. Auction prices can also provide another reference point, but they are generally at least 25 percent higher than what you'd find in a gallery and both local and foreign auctions attract a lot of speculation. In fact the dizzying prices we are seeing today are partially the result of Mainland speculators who put their own works on the auction block, have someone else bid them up and buy them back paying only a 10 percent commission to the auction house for this "service". As a result many think that a lot of Chinese contemporary art is overvalued and that the bubble is soon to burst. Already we are seeing signs of a correction in the market with the lesser works of the top 10 displaying weaker prices than before. Still, despite all the auction monkey business and high prices, there are good opportunities for the cautious collector. Sculptures, video art and multiples such as photography and prints come at much more reasonable prices sometimes as low as RMB5,000 (A$930), but with multiples it is important to make sure that you are buying limited editions. With buying photographs and prints for instance, it is important to make sure that the prints are numbered and signed by the artist and you have a certificate of authenticity. Here it really helps to trust the gallery, as you don't want them to be running off 500 copies of something which you bought as a limited edition print. Working with trusted galleries such as ShanghART, m97 and IFA (in Shanghai), Universal Studios, Arario and Red Gate (Beijing) and Schoeni, Hanart or Osage (Hong Kong) will help minimize the risk. Though the premium ones do often ask for premium prices, you can generally count on them to work hard to raise the "brand profile" of these artists, by trying to get them in important collections, art fairs and big shows abroad - thus raising the value of your recently purchased work. Also if you build up a good relationship with them, they are bound to give you better deals. "Every gallery has its own methods, in China there is a hardcore bargaining culture", says Schoeni. "If you don't play the game you pay a crazy price. If you're a long-term client you will get a discount and there's no harm asking if they can include packing and shipping." Another strategy to save a bit of money is to buy in Hong Kong, which is a tax-free zone and is not subject to China's luxury taxes, which add up to almost 30 percent. Many Mainland galleries can also arrange for sale in Hong Kong so ask your gallerist about this option if you plan to have your work shipped back to your home country. Hong Kong auctions also provide access to new work says Evelyn Lin, Head of Asian Contemporary at Sotheby's in Hong Kong. "In Hong Kong we provide a better quality of works [from the collectors in the US and Europe] If we talk about the Mainland China market most of the pieces [on auction] have been circulating in the market for a while, so it's not fresh." The fact that most of the good early works are abroad is really no accident as most of it was snapped up by foreign collectors in the ‘90s. Around that time, China started to participate in biennales and key contemporary art exhibitions such as "Alors la Chine" and "Post 89" curated by influential Hong Kong dealer Johnson Chang. Collectors were drawn to the easily digestible imagery of political pop (think red stars and strident workers) and cynical realism (the smiling faces of Yue Minjun). Today political pop and cynical realism still dominate the auction blocks, but you have to be choosy about what you buy. "For Zhang Xiaogang the collectors are looking for the early works produced between 1994-1996. But for Zeng Fanzhi they are looking to collect examples of his different styles", says Lin. For more afforadable historical works Schoeni recommends Liu Wei, who is of the same generation as the top 10 but is still relatively cheap. While most collectors aim to make their collection comprehensive with important historical works from a number of different artists and mediums, some choose to zero in on just one medium. Video art collecting, says Lin, is becoming a big trend. "I feel that video art will become the main medium for this market, even though it's really small money right now, it's a strong trend."  Generally it pays to be ahead of the trends and rather than reaching for the pricey historical works, so its best to aim for emerging artists and affordable mediums. Keep an eye out for younger artists such as those dubbed the "Jelly Generation" or ‘80s babies. Their work incorporates a lot of cartoon and comic book imagery and has a strong vibrant poppy aesthetic. Names include Beijing Animator Bu Hua and painter Ying Yefu. The Chinese contemporary art jungle can be daunting, but if you are still feeling totally clueless, it might be worthwhile to contact an advisor. "It's relatively hard to find independent art criticism and objective advice in China," says William Hanbury-Tenison, a fine art agent based in Shanghai who offers consulting to buyers and sellers, "There are lots of opportunists out there". An adviser is certainly a wise idea, but failing that you can always follow the age-old collectors' adage: collect what you love; then you'll never be disappointed. ■ HOW MUCH IS TOO MUCH? Copies & Décor Art RMB 300-RMB 2,000 (A$56 - $A375) Nice things to decorate the house. Copies of the top ten Chinese contemporary artists, abstracts, color field paintings and copies of Van Gogh's Sunflowers can be easily found at commercial painting markets. Multiples: Photographs and Prints RMB 2,000-RMB 40,000 ($A375 - A$7,485) Photographs and prints (lithographs and woodblock prints) are sold in editions, which makes them a lot cheaper. Usually the first edition is cheaper than the 20th edition and so on. Prints by conceptual photographer Luo Junzhang go for as little as RMB 3,800 (A$711) at ofotogallery in Shanghai. Early-Mid-career Painters RMB 10,000-RMB 80,000 (A$1,870 - A$15,000) Painting is one of the most expensive mediums in China. Still there are a few deals to be had. A painting by up-and-coming animator, Fang Wei goes for HK$10,000 (A$1,650) while mid-career artists such as Chen Ke, can be had for HK$42,000 (A$7,000) (mixed media photographs) at Schoeni Gallery in Hong Kong. Mature Artists and Top 10 HK$250,000 (A$41,250) - US$6 million (A$7,645,000) For these prices you should expect that the work has been collected by major institutions abroad. This range goes from HK$250,000 (A$41,250) for a Zhou Jinhua at Schoeni, to up to RMB 800,000 (A$150,000) for a Xu Bing or small Cai Guoqiang. China's top ten artists sell for US$ millions. ART CONSULTANTS Guido Mologni: www.boulow.com William Hanbury-Tenison: www.fineartagent.com Amy Wood: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
|
 |
 |