Why buy Chinese contemporary art ?
Chinese contemporary art is the hottest ticket in the auction world today. With the rise of global wealth, the desire to own a piece of China's history as it develops, and its competitive pricing compared to Western art, the market is booming, and does not seem to be peaking any time soon. If anything, says Michael Moses, co-founder of the Mei/Moses Fine Art index, the Chinese contemporary art market is moving at a feverish pace and it projects very strong growth - base sales are doing well, with high percentage of pieces sold (at auctions). The Mei/Moses index, started with his colleague, Mei Jianping at New York University Stern School of Business, measures the co-relation of art performance relative to the S&P 500 index. Yap Chin-Chin, a Singapore-born specialist of Chinese Contemporary Art based at Phillips De Pury & Company, New York, believes Chinese contemporary art is competing on both price and fashion trends. 'It is also seen as rather trendy or progressive to be in on the contemporary Chinese market,' she says. 'Many of these works feature historic references such as images of Mao and Tiananmen. Collectors like owning a piece of what they perceive as history but even the most expensive contemporary Chinese artworks are still a bargain compared to their American or European counterparts.' It is no surprise that collectors worldwide are catching on. Sotheby's and Christie's reportedly sold US$190 million worth of mostly Chinese contemporary art in 2006, as compared to US$22 million in 2004. Auction houses are also featuring more Chinese contemporary work at contemporary art sales, traditionally driven by top Western artists such as Andy Warhol and Francis Bacon. Rising strength Stephane Le Pelletier, director, Opera Gallery Asia-Pacific, is not surprised. 'Singapore's art market gets its cue from the international and regional art scene which sees a high focus on contemporary Chinese art.' Experts also attribute this rise to several factors - the booming local economy, historical significance of such art, a shift in collecting patterns and increased exposure to Chinese contemporary artists which make them more socially acceptable. Rising attention Says Meley Law, manager of Linda Gallery, which has recently set up two galleries in Beijing focused on Chinese contemporary art: 'Now everyone is hot about everything about China, and naturally the attention on Chinese contemporary art is also rising, given the economy is doing well.' Kwok Kian Chow, director, Singapore Art Museum, believes that the historical significance of Chinese contemporary art is certainly fuelling its popularity in Singapore and the rest of the world. 'Art historically, Chinese contemporary art is an alternative to mainstream modern art. It is aligned with philosophical and aesthetic trends of the period and also expresses a certain human condition that is easy to identify with,' he points out. These works, having been created at significant phases in China's turbulent history, have also incorporated ideas and values from the Cultural Revolution which further resonate with buyers. Increased exposure to Chinese contemporary art has also played an important role in making such artists socially palatable. Young local collectors, travelling more for business and pleasure, are increasingly exposed to international art fairs and gallery exhibitions of Chinese contemporary art worldwide, heightening their interest in this area. Veteran photographer, dealer and owner of Soobin Art Gallery, Chua Soo Bin believes that this is long overdue, having championed Chinese contemporary art for several years. He believes that the rising popularity can also be attributed to a shift in collecting patterns. 'Many buyers are not only influenced by major shows held by top curators worldwide - a lot of collectors who used to collect ink paintings are now collecting Chinese contemporary art instead.' In 1997, Mr Chua recalls not selling one single painting when he first brought in top calibre artists, including the F4 group to Singapore for an exhibition entitled Red and Grey: Eight Chinese Avant-garde Artists. 'Many people thought I was crazy,' he laughs. The situation now is reversed. As the Chinese contemporary art market accelerates, it has serious repercussions. Many artists, galleries and dealers, keen to get a piece of the action, are springing up everywhere, some of which do not even know about art. However, a silver lining prevails. Industry experts believe that the Chinese contemporary art boom has created a new market segment in Singapore - young, professional executives in their 30s and 40s, often in the banking sector, who spend tens of thousands on Chinese contemporary art in the hope of turning a quick profit. Implosion of prices These adventurous investors, flush with cash and on the look-out for rapid yield-seeking investments, are enticed by the prestige of art investment. Encouraged by the sudden liquidity, they are buying art from local dealers to sell in the short term at worldwide auctions, contributing to a sharp implosion of prices. They are now purchasing Chinese avant-garde works, which are currently in fashion. From Business Times Singapore