CHINA: Beijing joins the ranks as one of the biggest art markets in the world, but counterfeits still lurk in auctions and cluttrer street stalls

Record ID: 574052

  • Title: CHINA: Beijing joins the ranks as one of the biggest art markets in the world, but counterfeits still lurk in auctions and cluttrer street stalls
  • Date: 18th November 2011
  • Summary: BEIJING, CHINA (NOVEMBER 13, 2011) (REUTERS) PEOPLE AT AUCTION SITE AUCTIONEERS AUCTIONING PAINTING SCREEN SHOWING SERIES OF PAINTINGS BY CHINESE PAINTER QI BAISHI WORTH 169 MILLION KUAI (27 MILLION USD) TRADER RAISING PRICE CARD AUCTIONEERS AUCTIONING PAINTING BUYERS RAISING PRICE CARD AUCTIONEERS HAMMERING DEAL (SOUNDBITE) (Mandarin) VICE PRESIDENT OF CHINA GUARDIAN, KOU QIN SAYING: "The total sale has reached 1.3 billion kuai. It is basically in line with our expectation. Although there have been discussions about the recent economic condition, the important items were still bid at a high price." CROWD AT AUCTION SITE AUCTIONEERS AUCTIONING PAINTING BY CHINESE PAINTER WANG HUI SCREEN SHOWING PAINTING BY WANG HUI WORTH 110 MILLION KUAI (17 MILLION USD) BUYER LOOKING AT ALBUM TRADER RAISING PRICE AT THE DELEGATE SEATS WOMAN USING MOBILE PHONE (SOUNDBITE) (Mandarin) VICE PRESIDENT OF CHINA GUARDIAN, KOU QIN SAYING: "With the changes in the domestic investment environment, other channels such as real estate and stock market have recently not been that satisfactory. Thus, art becomes a new way to invest, bringing in a large amount of money, raising the prices in the market and enlarging the volume." BEIJING, CHINA (NOVEMBER 11, 2011) (REUTERS) CHINESE PAINTING SECTION OF AUCTION PREVIEW PAINTING BY CHINESE PAINTER QI BAISHI MAN LOOKING AT QI BAISHI'S PAINTING VARIOUS OF PEOPLE LOOKING AT CHINESE PAINTINGS MODERN ART SECTION OF AUCTION PREVIEW MODERN ART PEOPLE WALKING ACROSS MODERN ART SECTION BEIJING, CHINA (NOVEMBER 10, 2011) (REUTERS) (SOUNDBITE) (Mandarin) VICE DIRECTOR OF CHINA COLLECTOR ASSOCIATION ZHANG ZHONGYI, SAYING: "There are indeed problems in the market, for example, rampant counterfeits, prevalent hype-ups and the issue of integrity regarding the authenticity of the items. These problems undoubtedly exist today." BEIJING, CHINA (NOVEMBER 11, 2011) (REUTERS) PEOPLE WALKING AROUND OUTDOOR ANTIQUE MARKET SELLERS SITTING IN FRONT OF FAKE CHINESE ANTIQUES FAKE PORCELAIN VARIOUS OF BUYER LOOKING AT FAKE JADE PEOPLE WALKING AROUND OUTDOOR ANTIQUE MARKET BEIJING, CHINA (NOVEMBER 10, 2011) (REUTERS) PEOPLE VISITING PAINTING SECTION OF AUCTION PREVIEW PAINTING OF HORSE (SOUNDBITE) (Mandarin) COLLECTOR AND CONNOISSEUR OF CHINESE PAINTINGS, LIU WENJIE, SAYING: "We must monitor auctions with regulations and laws to make them reasonable. Only by doing this we can protect the interest of the buyers and promote the development of the auction market." BEIJING, CHINA (NOVEMBER 11, 2011) (REUTERS) PORCELAIN SECTION OF AUCTION PREVIEW FLASHLIGHT SHINING ON PORCELAIN MAN SHINING FLASHLIGHT ON PORCELAIN VARIOUS OF MAN OBSERVING PORCELAIN PORCELAIN
  • Embargoed: 3rd December 2011 12:00
  • Keywords:
  • Location: China, China
  • Country: China
  • Topics: Business,Arts,Industry
  • Reuters ID: LVA34RS777VD39WDDT5ION0AZPFG
  • Story Text: China's art market is becoming one of the biggest in the world as the country's growing middle class is pouring money into art as an investment, but worries over the country's rampant counterfeits still abound.
    China has become the world's second largest art market (after the United States), with last year's turnover reaching 8.3 billion USD, according to the British Art Market Federation.
    One third of the world's fine art sales took place in China last year, according to a report by Australia's art advisor company Anita Archer Fine Art.
    In one of the biggest Chinese art auctions this autumn, the five days sale total reached 599 million USD. (3.8 billion yuan).
    The most expensive item at the 2011 China Guardian Autumn Auction, sold at 30.6 million USD, was a set of scenery paintings by Chinese artist Qi Baishi. Its value had risen by over thirty times from its last bid in 1994.
    The auction house's vice president said he was happy with the first two days' sale.
    "The total sale has reached 1.3 billion kuai (20.5 million USD). It is basically in line with our expectation. Although there have been discussions about the recent economic conditions, the important items were still bid at a high price," Kou Qin said.
    Art auctions were first introduced to China in 1986. China Guardian and Poly International Co., Ltd have grown to be the two leading auction companies in China, taking up nearly 33 percent of the Chinese market.
    The recent global economic turmoil had increased Chinese consumers' appetite in art investments, Kou said.
    "With the changes in the domestic investment environment, other channels such as real estate and stock market have recently been not that satisfactory. Thus, art becomes a new way to invest, bringing in a large amount of money, raising the prices in the market and enlarging the volume," Kou said.
    The investment potential, however, also comes with problems.
    The market faces three key obstacles, said Vice Director of China Collector Association Zhang Zhongyi.
    "There are indeed problems in the market, for example, rampant counterfeits, prevalent hype-ups and the issue of integrity regarding the authenticity of the items. These problems undoubtedly exist today," Zhang said.
    Counterfeits are abound in a popular Beijing outdoor flea market, where sellers tout fake antiques and artefacts.
    Selling fake goods at the Panjiayuan (pron: pan-jee-a-yuan) market is a livelihood for many, mostly art students.
    A certificate for authenticity only costs 35USD and a shopkeeper said that not even one out of 10,000 pieces in the market is authentic.
    Analysts said a loophole in Chinese laws has become a pretext for the auction companies' sloppy practices, with regulations stating that auctioneers who do not guarantee an object's authenticity before an auction are free from any liability.
    "We must monitor auctions with regulations and laws to make them reasonable. Only by doing this can we protect the interest of the buyers and promote the development of the auction market," said Liu Wenjie, a prominent art collector in China, adding that he only collects paintings that can "stand the test of history".
    Liu also said that some speculators hype up low-quality paintings solely for profit.
    A popular saying in the Chinese art market says that "those who can afford don't understand art, while those who understand cannot afford", posing a challenge to the collectors' ability to tell genuine from fake.
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