Investing in Chinese Contemporary Art- Tips to Getting Involved in the Chinese Art Craze

The Chinese Contemporary Art market accounted for one-third of global fine-art sales exceeding $3 billion last year alone, according to reports by Artprice, a leading French-based art information company.

'Execution' by Yue Minjun, 1995. Sold at Sotheby's
12th October 2007 London auction for nearly $6 million.

Statistics shown by the company reveal that several Chinese artists ranked in the top 10 worldwide in terms of auction revenue in 2010: Qi Baishi, Zhang Daqian, Xu Beihong and Fu Baoshi. Not forgetting living Chinese Masters such as Zhang Xiaogang, Yue Minjun, Cai Guoqiang and Wang Guangyi, commonly referred to as the Four Heavenly Kings; have commanded consistent sky-high prices in auctions worldwide to date. Indeed, Chinese Contemporary Art has taken the art world by storm.

'Bloodline: Big Family no. 1' by Zhang
Xiaogang sold at USD 8.4 million during
Sotheby's Hong Kong auction, 3rd October
2011

Over the past decade, the market for Chinese Contemporary Art experienced enormous growth and is the most sought-after form of contemporary art in the world. The reason being that the Chinese Contemporary Art market not only does not show any signs of slowing down, its actually still growing due to the market for Chinese Contemporary art is extremely strong in many art communities since it started. The fact that China's economy has been relatively unaffected by the global recession and personal wealth within China is growing rapidly also contributes to Chinese Contemporary art being highly sought after; with Chinese investment banks to private collectors taking their slice of the pie and placing it in a state of 'supply more than demand'. In fact, contemporary art experts are forecasting the market to continue its growth for the next ten years.

So, How Do I Get Started? 

According to Judith Neilson, personal connection with the artwork is key. As the founder of the nonprofit White Rabbit Museum in Sydney, Australia, one of the largest private collections of Chinese Contemporary Art, Neilson strongly suggests to buy works that you fell in love with. Try understanding the background of the artist and his concept will also help you 'relate' better to the artwork. A recognized artist is often a safe and sound investment, alternatively, you can also buy from a young-promising artist who's works are likely to become more popular- thus increasing in value. Although it could be more risky, this goes for all kinds of investments, not only for Art.

Where To Buy

Beginner collectors may feel that auction houses provide greater price transparency and bidders seem generally reassured by the presence of other bidders. However, prices can be extremely competitive in auctions due to several factors such as the high bidding season, the particular series of the works as well as the provenance of each piece, as they could very well be generated through from a second or even a third personnel. You could however, do your homework from auctions, focusing on a specific pattern instead of one particular result.

Just Ask

During Art-scouting, don't be afraid to ask questions. An reputable Art dealer will be able to provide helpful pointers as well as a basic assessment on the investment-potential of the artwork to guide you along. If you are attracted to a series from an artist, it is likely that this artist will probably be one whose work you would enjoy collecting. Also, always request to view the actual pieces before you purchase.

No doubt, the Chinese Contemporary Art trend will continue. Any bubble that built up in the industry before the global equity crash had passed, hinting at a room for further increase in value in the very near future. If you see something you like, don't dally. Prices are rising as you wait.