INVEST IT ART INVESTING IN CHINESE ART
ENTREPRENEUR & INVESTOR talked to Fred Weijgertse, Managing Director of Crown Fine Art - the world’s first integrated international fine art logistics company, about the growth in the Chinese art market and what it means for global collectors. Why has interest in the art market grown in China? Political change has certainly helped. For instance new regulations allowing the sale of art, wine and collectibles within virtual free-trade zones, has boosted the market. It means buyers at auction can avoid customs duty of six per cent and VAT of 17 per cent – and has led to both Christie’s and Sotheby’s establishing bases in mainland China. Improved global transport, increased global cooperation between galleries and the rise of the online market has had an impact, too. But the growth of the Chinese economy and with it the increase in the disposal income of its residents is probably the key. There has always been an interest in western art in China but only now can people seriously considering owning it. Art is becoming more accessible within China too - construction is booming in China’s second-tier cities, with 200 commercial galleries with new art spaces opening every week. So what are the big centres for art in China? The hot spots are Beijing and Shanghai on the mainland, and of course Hong Kong which has always been a thriving art market. Beijing, as the capital of China, has more than 100 museums, including the Museum of Contemporary Art, and features the thriving 798 Art Zone (a hub for modern art and artists). It is fast becoming a major force in the international art market. As for Shanghai, it has the largest population of any city in China and that says it all. Traditional Chinese art and contemporary art are both widely represented, which is interesting for the western market as young artists working in Shanghai combine Chinese tradition with western views on art. Shanghai Art Fair is one of the world’s most respected, while the Shanghai Museum hosts temporary exhibitions in collaboration with some of the most important collections in the world, such as the Kremlin Museum, the Hermitage, the British Museum and the Rijksmuseum. It is not to be underestimated. Hong Kong has always been the gateway to art in China and is possibly the world’s largest art and antique market. Being a free port with no limits on imported art – and no sales tax – gives Hong Kong a strong position. Sundaram Tagore was the first artist to set up an international art gallery there in 2008 and growth since then has been immense. Art HK, the contemporary arts fair now run by Art Basel, has grown from 19,000 attendees and 100 galleries in 2008 to 67,000 visitors and 266 galleries last year. Big names such as London’s White Cube and New York’s Gagosian are there. Importantly the government’s Leisure and Cultural Services Department subsidises and sponsors international performers brought to Hong Kong and that drives the market too. Which are the main art fairs to look out for? Shanghai Art Fair, as I mentioned, is an important one, Art Beijing, Art HK too. Probably the next one for collectors is the Fine Art Asia Fair in Wanchai, Hong Kong, on October 4. What genres and artists interest the Chinese market most? In the domestic Chinese market, the rarity of traditional calligraphy and paintings mean that these are prized by Chinese collectors as safe investments. Contemporary ink, using traditional techniques and materials, is also a major trend to watch; and there remains a strong interest in traditional crafts, like lacquer ware and cloisonné (a type of metalwork) too. The pace of change in China, and in the art market, has been phenomenal though and it will be interesting to see where it leads. The pace of growth has slowed over the last year but nevertheless there is a clear movement towards interest in western as well as Chinese art. Post 1900s modern and in particular contemporary art is favoured – along with jewellery and some Impressionist art - and is driving growth. With more 55