China's Art Auction Market

When many people talk about the market situation of Chinese art auctions in recent years, they all use a very vivid word - "halved" - referring to the "miserable situation" in which the total transaction volume of Chinese art auctions in 2012 shrank by nearly half compared with 2011. In response, optimists cheered and said that this was a "rational correction"; pessimists sighed and said that this was a "cold snap". What happened in the art auction market?

If we count from 2003, this round of market situation in the Chinese art market has lasted for nearly ten years. Although there have been big rises and corrections in the past ten years, the "long bull" trend has basically remained unchanged. Even under the impact of the global financial crisis in 2008, it unexpectedly recovered quickly and rebounded strongly.

Specifically, the sharp correction in the autumn auction of 2012 was actually caused by many factors: one is the economic environment. Under the circumstances of the grim economic situation, it is a rational choice for collectors and investors to hold tight their wallets and keep sufficient cash to "survive the winter". Second, expectations. In many cases, expectations are more important than the current situation. Buyers' wait-and-see attitude may not be entirely because they are really ready to stay away from the art market, but may be hoping to "shop" at a lower price in the near future. Third, price. The current price of Chinese art is still very expensive overall, after all, it has been rising for so many years. To be honest, many experts who really know the business can no longer afford it. Fourth, the source of goods. After so many years of transactions and precipitation, the "good things" that can be publicly circulated in the market are indeed getting fewer and fewer. This is why major Beijing and Shanghai art auction companies and even national art auction companies have all gone overseas to collect auction items. Fifth, credit. The credit problem in the Chinese art market has a long history, but as the market becomes increasingly popular, the severity of this problem has become increasingly prominent. For example, the phenomenon of buyers bidding without paying has a profound impact on the market and has a chain reaction effect on the entire art auction industry.