Significant Liquidity in Asian Art Market

Eric Chang
Head of Christie's Asian Contemporary Art and 20th Century Chinese Art

Based on more than thirteen years of working experience in the domain of Chinese contemporary art auction market, we introduced evening sales for the first time for the Sales of Hong Kong Christie? Asian Art Department which was held May 24 and 25 this year due to international demand in Hong Kong art market. 32 lots were sold among 34 presented works making a hit of our first evening sale recording 94% of bid percentage, total sales amount of USD $40,688,629 (incl. buyer? premium). Evening sale had been deemed as exclusive for New York and London however, Hong Kong right now covers the global buyers, especially those from across Asia. Although the domestic Chinese art market is large and solid, Hong Kong art market is much more international. Even when the Chinese economy may exert small or large influence on the Chinese art market, Hong Kong art market is not affected just like the Asian art market.
The result of autumn sales of Asian contemporary and 20th century Chinese art was not quite disappointing although current situation expected that contemporary art market? status will show a downward trend be caused by world economic crisis which has been started since the second half of the year from New York Wall Street. Against a continuing difficult financial backdrop, the sale of Asian Contemporary Art and Chinese 20th Century Art, held on 30th November and 1st December, achieved USD 18,139,980/ Euro 14,286,992, with active participation from collectors around the world, reconfirming Hong Kong as the center for contemporary and modern Asian art. We are particularly pleased with Zao Wou-ki? Hommage ?Tou-Fou achieving a world record for the artist, fetching USD $652,740.
55% of presented lots were sold in Asian contemporary art day sale and 56% of lots were sold in Asian contemporary evening sale. Shi Chong? A Walking Man II was sold for USD $374,100, recording the highest price for the Asian contemporary art day sale while?he top lot in the Asian Contemporary Evening Sale was Zhang Xiaogang? Bloodline: Big Family No.2 ?a large family portrait from the collection of Hollywood director Oliver Stone, which sold for USD $3.4 million.
From the two records in our Chinese 20th Century Art Day Sale and 29 records in the Asian Contemporary Art Day Sale, as well as the fact that 31% of works sold over their high estimates, and 29 works sold over HK $1 million, we can see that there is still liquidity in the contemporary art market. Together with our Evening Sales, these results and participation show that Asian contemporary art and Chinese 20th century art are developing towards a more mature and stable market.
Our Hong Kong sales this year have shown resilience in the face of global economic challenges. There is a demand for the rarest Asian art, and the best results recorded are being broken across collecting categories. It is encouraging to see a strong level of liquidity and interest among Asian and international buyers who continue to look for opportunities to acquire great works that rarely come to market. Asia presents important opportunities, and we believe the results from our Hong Kong sales show that the Asian art market continues to be one of the key drivers of Christie? growth in the future.
In this season, we got the biggest number of new clients who look for reasonable prices. Compare to European or US business market, Asian art market is relatively stable as people want to approach with their confidence of unchanging and continuous value. Right Now is the best time to get art works by reason of inexpensive price range and Asian art market which is related to each others between China, Korea and Japan is still in starting point. Western collectors maintain their interest in Asian culture and its unique idea as well as their possibility to growth in aspect of economy.
We are perhaps seeing a correction from the past few seasons. But, there is a significant liquidity and a surprising amount of activity when a lot of people thought that there would be no activity at all. The turbulence hasn? hit our market as it has in other areas. We know that in these turbulent times, great works will come to sale. The works we sell are  reassuringly tangible ?and they have an inherent value that makes them relatively stable stores of value over time. Although prices will fluctuate, there is never a question about the value of what we are trading. We have encouraged sellers to agree to reasonable estimates and reserves and to be as generous as possible in providing extra time for buyers to pay.