From the Glass Archive – The Power of Vision: how China became a major art world player

 The Power of Vision –  Part two of a Glass exploration to reveal just how China became one of the most powerful art markets in the world

A prosperous present
IN THE last ten years we have seen a phenomenal rise of Chinese contemporary art which, as it matured and evolved, acknowledged and adapted influence from the West into its own cultural language. The development of China’s art market followed, modifying methods used in the West and creating its own unique system. In the early days of this market, it was clear that art galleries were lacking and the system was inexperienced. Facing these circumstances, the commercially savvy local artists became their own galleries, selling their works directly from the studios or from the auction houses, thus creating a completely different structure within the market itself compared with the West, where an artist is first represented by a gallery before progressing to private and museum collections, with the auction house at the end of their cycle, or even career.

In China this cycle has been turned completely on its head. “When artists were producing work from a studio some years ago, they didn’t know exactly what the art market was. They never heard that they could sell their art for a living, so the art market is a new concept for most of the Chinese,” explains Evelyn Lin, Head of Contemporary Chinese Art at Sotheby’s Hong Kong.

“Of course if you go to Beijing you will see so many galleries now, but unfortunately most have just started the business very recently and the major problem is that they don’t have their own system, they are not really comprehensive and experienced inside of China. That is the reason that gave the auction houses such a great opportunity to lead this market. Another important reason is that collectors, especially from Asia, feel very comfortable in spending their money in the auction market, because the auction is very transparent, reliable and market powerful.”

Christie's Hong Kong Asian 20th & Contemporary Art Evening Sale, 28 May 2011, Zao Wou-Ki (Zhao Wuji, B.1920), 14.11.63, painted in 1963, oil on canvas, 131 x 196 cm, Estimated HK$ 12,000,000 - 16,000,000, the painting was sold for HK$ 38,740,000, Courtesy of Christie's Images LtdChristie’s Hong Kong Asian 20th & Contemporary Art Evening Sale, 28 May 2011, Zao Wou-Ki
(Zhao Wuji, B.1920), 14.11.63, painted in 1963, oil on canvas, 131 x 196 cm. Estimated HK$
12,000,000 – 16,000,000, the painting was sold for HK$ 38,740,000. Courtesy of Christie’s Images Ltd

Eric Chang, International Director of Asian 20th Century and Contemporary Art at Christie’s, embellishes further, “Auctions play a significant role in determining quality and value by performing the secondary market function, which establishes the fair market price and assurance of the examination of provenance. However these prices do fluctuate with economic conditions and collectors’ interest often changes direction. Auctions help track the changes in the market.”

According to Swiss gallery owner and art dealer Urs Meile, “In China people earn fast and spend fast. There is still a lack of information among that group of people having a lot of money; they don’t feel really confident about visiting galleries because they think that going to galleries requires knowledge, they will be asked questions they cannot answer, or look at something that they won’t understand. A substantial difference in the market starts here, that people go and buy contemporary art at auctions, because auctions feel confident as you are together with a group of people, you don’t have to talk about content but you see there is a work and you have a big group of people interested in it, so you think this must be good, and you go on from that.”

The different flow of information and a different attitude towards collecting points to the controversial question: are the Chinese trophy buyers? Eric Chang clarifies, “The concept of ‘face’ is very important in China. The fascination with consumer goods and materialism is a mark of sophistication and status, especially after several decades of deprivation.”

Sotheby's Hong Kong The Ullens Collection - The Nascence of Avant-Garde China Sale, 3rd April 2011, Zhang Peili, Series "X?" No.3, oil on canvas 1986, Estimated HK$ 1,500,000 - 2,500,00, The painting was sold for HK$ 23,060,000 / US$ 2,956,410, a world record for the artist at auction, Courtesy of Sotherby'sSotheby’s Hong Kong The Ullens Collection – The Nascence of Avant-Garde China Sale, 3rd April 2011,
Zhang Peili, Series X? No.3, oil on canvas 1986. Estimated HK$ 1,500,000 – 2,500,00,
The painting was sold for HK$ 23,060,000 / US$ 2,956,410, a world record for the artist at auction.
Courtesy of Sotheby’s

The rise of the Chinese buyer has been a hot topic of conversation. “There is a lot of wealth being created in China, a lot of the luxury businesses are growing and booming and I think the buying of art is another piece of the puzzle,” explains Larry Warsh, contemporary Chinese art collector and founder of AW Asia, an organisation that promotes Chinese contemporary art through institutional loans, museum acquisitions, curatorial projects and publishing, and also the man behind the touring exhibition Ai Weiwei: Circle of Animals/Zodiac Heads.

“Some of it is conspicuous because people want to be recognised as collectors. The other half is not conspicuous, and in this case people want to own quality work but not necessarily be seen as ‘collectors’. I think that with the current social/political climate in China there are a lot of people collecting in the art market but they are keeping their activities concealed. They don’t want to reveal that they have a lot of wealth.”

Where before there was a greater focus by the Chinese buyers in Chinese ceramics and antiques, particularly in Imperial pieces and realistic oil paintings, today, “Chinese in China and overseas Chinese are also avidly collecting 20th Century and Contemporary Chinese art, apparently seeking quality and value”, continues Eric Chang. “The high interest in Chinese art of all ages and media is being created and sustained by the determination by many Chinese to repatriate their own art.”

And if Westerners were the main buyers of Chinese art in the early market days, now the Chinese are giving them a quite literal run for their money. Evelyn Lin talks numbers, “If you take a look at our records in 2004, you can actually see that Western buyers had originally played a very important part: they represented 70 per cent of our sales. In 2005 they were down to 50 per cent and in 2006 even down to 25 per cent, by which I mean Chinese buyers and Asian buyers have been growing steadily since 2005 and they are now a very important buyer for our sales.” As a result, the competition is spiking up the interest from the West even more – despite the sky-rocketing prices.

Wang Qingsong, Competition, 2005, 170 x 300cm, Commercial War: the work represents a fight about the market by different companies with their enticing advertisements. Courtesy of the artistWang Qingsong, Competition, 2005, 170 x 300cm, Commercial War: the work represents a fight about the
market by different companies with their enticing advertisements. Courtesy of the artist

“In the early years, it’s true that many Westerners bought a lot of the Chinese contemporary art and they continue to buy now,” confirms Eric Chang. “With the rise of the economy in Asia, more and more Asians are participating in buying Chinese contemporary art. This is also seen in our most recent sales. During the early years of the PRC, foreigners such as European diplomats and academics were the primary buyers of modern Chinese artists’ works, as they had access to the artists in times when there were no galleries or museums in China and pursuing art was considered bourgeois. Western interest has continued but has been augmented by the swiftly growing interest from Chinese collectors.”

And the rising number of art buyers who are driven to some degree by potential profits is also bringing in new serious collectors to the game. “Now it’s more about the new Chinese collector, one who understands the next stage of Chinese history. They are late to the game of collecting in this field. However, they see the value of Chinese contemporary artists who are recognised and important,” explains Larry Warsh.

“Part of the AW Asia mission is about sharing information with Chinese collectors, educating them about the field as a whole. The more Chinese that are actively collecting, the better it is for the entire industry. Their collecting and their interest in turn creates a stronger support system. Collectors will then turn to philanthropists and people involved with museums. That helps to create additional foundations in China. The West can be a credible collector of Chinese art. However, the West won’t be able to compete with the Chinese and their desire to buy their own work and create their own institutions that will exhibit that work.

Mao Xuhul (B.1956), 92 Paternalism, Painted in 1992, oil on canvas, triptych, Each 180 x 110 cm, overall 180 x 330 cm, Estimated HK$ 3,000,000 - 5,000,000, the painting was sold for HK$ 11,860,000 / US$ 1,527,568 at Christie's Hong Kong Asian Contemporary Art & Chinese 20th Art Evening Sale on the 27th of November 2010, setting a world auction record for the artist, Courtesy of Christie's Images LtdMao Xuhul (B.1956), 92 Paternalism, Painted in 1992, oil on canvas, triptych. Each 180 x 110 cm, overall
180 x 330 cm, Estimated HK$ 3,000,000 – 5,000,000, the painting was sold for HK$ 11,860,000 / US$ 1,527,568
at Christie’s Hong Kong Asian Contemporary Art & Chinese 20th Art Evening Sale on November 27, 2010,
setting a world auction record for the artist. Courtesy of Christie’s Images Ltd

“The ‘new Chinese collector’ is a powerful concept. For every five new Chinese collectors that enter the market and purchase works alongside collectors who have been collecting for awhile, this new activity will stimulate the health and growth of the art market.” Renowned art advisor and collector Michael Frahm continues, “Serious collectors are now coming out of China and we are witnessing people who are committing a significant amount of their life and wealth to create something special and unique in China. Samuel Kung is a good example of a serious collector who is also partly funding a museum in Shanghai (MoCA) and we are starting to see this cultural trend emerging throughout China. It is an incredibly positive development and this may well become the rise of the new art collector in China.”

Everything that happened in China has posed a lot of questions to the art market, including the relationship between the artist and the gallery. As the art market becomes more global and more equal, it also explains why today foreign galleries such as the Swiss Urs Meile gallery, Gagosian, Schoeni and Pace are flocking to China, opening up branches in the mainland and Hong Kong and joining forces with a growing number of influential national spaces such as Hanart TZ (founded by contemporary Chinese gallerist and curator Johnson Chang), Tang Contemporary Art and the Soka Art Center, among others.

With the potential of Asia now obvious, being present there to help build the scene and relationships is perceived as a wealthy investment for the future. Wang Qingsong, a highly acclaimed contemporary artist, confirms, “More businesses and projects are achieved in between local art museums, galleries, organisations and art centres”.

The growth of the Chinese art market and the rise of the Chinese collector has fuelled a change in perspective in the West, creating new market opportunities also for Western artists and inspiring pioneering ideas such as the artist-in-residence programme set by the Urs Meile gallery in Beijing. “For years people involved in the art market or in galleries brought Chinese art to the Western world and it was rather an exception that it went the other way round, so I was very much interested in this exchange for both sides,” explains Urs Meile.

“With our new spaces in Beijing we had the chance to establish this programme, and whenever an artist finishes his stay at the artists-in-residence we always have an exhibition showcasing the work produced throughout this period of time. Quite often this is like a first step, where the younger generation of artists from the Western world have the chance to introduce their work to the Chinese art scene. It’s really the thought of exchanging ideas and connections.”

Sanyu (Chang YU, 1901 - 1966), Potted Flowers in a Blue and White Jardiniére, Painted circa 1950's, oil on masonite, 19.9 x 62 cm, Estimated HK$ 8,000,000 - 12,000,000, the painting was sold for HK$ 34,820,000 at Christie's Hong Kog Asian Contemporary Art & Chinese 20th Century Art Sale on the 29th of November 2009. Courtesy of Christie's Images LtdSanyu (Chang YU, 1901 – 1966), Potted Flowers in a Blue and White Jardiniére. Painted circa 1950s,
oil on masonite,  19.9 x 62 cm, Estimated HK$ 8,000,000 – 12,000,000, the painting was sold for
HK$ 34,820,000 at Christie’s Hong Kog Asian Contemporary Art & Chinese 20th Century
Art Sale on November 29, 2009. Courtesy of Christie’s Images Ltd

A bright future?
The phenomenon of Chinese contemporary art happened at the same time that China went global, opening the West’s eyes to a new world and an invigorating artistic production that was unexpectedly catching up. “When it happened, it had that whole, Made in China kind of stamp on it, which was extremely sexy,” remembers Michael Frahm. “It was also a time when the art market hadn’t seen anything new for a long time, and people were amazed and excited by what was emerging. I would argue that the rapid rise of Chinese art is probably one of the most significant developments to happen in the last 50 years of contemporary art.

“It changed the art world completely. When I think about my parents’ generation and the way that they were collecting, they were only looking at Europe and the US, but China made the art world global. It had a great appeal to a lot of people: it was something new and exciting, it was China and it almost felt forbidden but in a quirky and unique way. It was fascinating to be involved with the Chinese scene and you felt that you were taking part in shaping the world in the 21st century.”

Now, as its influence, reach and importance increases, China continues to develop the life cycle of its own market; and whilst new art markets emerge from countries like Russia, India and Brazil, it is important to project to the future. “You have to expand your vision, see where we are and where we will be,” explains Larry Warsh. “Now you have a foundation, you have the beginnings of Chinese contemporary art, and the important artists like Yue Minjun, Fang Lijun, Zhang Xiaogang, Wang Guangyi … they will be the Jasper Johns, the Warhols, the Lichtensteins of China.”

Sanyu (Chang Yu, 1901 - 1966), Cat and Birds Painted in the 1950's, oil on masonite, 154 x 77 cm, The painting was sold for HK$ 42,100,000 at Christie's Hong kong Asian Contemporary Art & Chinese 20th Century Art Sale on the 24th of May 2009, Courtesy of Christie's Images LtdSanyu (Chang Yu, 1901 – 1966), Cat and Birds Painted in the 1950s, oil on masonite, 154 x 77 cm.
The painting was sold for HK$ 42,100,000 at Christie’s Hong Kong Asian Contemporary
Art & Chinese 20th Century Art Sale on May 24, 2009. Courtesy of Christie’s Images Ltd

Other new mediums are also catching up and still in expansion, as top contemporary artists, together with the post-’80s generation, such as Wang Qingsong, Zhang Peili and Yang Fudong, among many others, pioneer the use of photography, film and electronic media as the silent powers in the spotlight of China’s bright new future.

“Today, for 300,000USD to 400,000USD you can build an amazing photographic collection,” Warsh continues. “For 2, 3 or even 500,000USD you cannot buy good quality paintings today, or it is hard to buy important work of the ’90s, but you can put together a collection of photography that could really stand just like these important paintings can. So economically speaking, and availability speaking, it’s right in front of us.

“My prediction or projection is that this will slowly change, as more museums, Western and others, continue to purchase important Chinese photography. It will be obvious to many later, that this was the thing to do; I maintain that this is something to do now. That’s when vision comes to play, and there’s where silent power comes into play, so I say you need vision and insight to recognise what is right in front of you now. You have to have the ability to project and visualise what will happen, with confidence.”

Zhang Xiaogang, Forever Lasting Love (Triptych), oil on canvas, 1988, Estimated HK$ 25,000,000 - 30,000,000, the painting was sold for HK$ 79,060,000 / US$ 10,135,897 at Sotherby's Hong Kong The Ullens Collection - The Nascence of Avant-Garde China Sale on the 3rd of April 2011, setting a world record for contemporary chinese art and a world record for the artist at auction, Courtesy of Sotherby'sZhang Xiaogang, Forever Lasting Love (Triptych), oil on canvas, 1988, Estimated HK$ 25,000,000 – 30,000,000,
the painting was sold for HK$ 79,060,000 / US$ 10,135,897 at Sotherby’s Hong Kong The Ullens Collection – The Nascence of Avant-Garde China Sale on April 3, 2011, setting a world record for contemporary Chinese art
and a world record for the artist at auction. Courtesy of Sotheby’s

The future of this brave new market, though, remains uncertain. After comparisons being drawn to the Japanese art bubble in the ‘80s, is there the possibility of an imminent crash? Eric Chang dismisses this prospect. “The Asian Contemporary Art and Chinese 20th Century Art market should be understood more as an art category with steadily growing market demand and increasing number of buyers, rather than a bubble.

“Except the slight adjustment in response to the economic uncertainty late in 2008, the sales in 2009 have been shown to defy the dip in the market and to mark a strong rebound. Christie’s Hong Kong sales of Asian Contemporary Art and Chinese 20th Century Art in 2009 have provided the strongest proof to our observation with its spring sale realising HK$ 282.9 million, and autumn sale HK$ 389.3 million. Across these two sales, a 38 per cent increase was recorded. The sale performance of this art category actually demonstrates most of the time very exciting momentum, showing a growing of 800 per cent from 2004–2008 and a growing international buyers’ base.

Chu Teh-Chun (Zhu Dequn, B.1920), Vertige Neigeux, Painted in 1990-1999, oil on canvas, diptych, each 200 x 200 cm, overall 200 x 400 cm, The Painting was sold for HK$ 45,460,000 at Christies Hong Kong Asian Contemporary Art & Chinese 20th Century Art Sale on the 29th of November 2009, Courtesy of Christie's Images LtdChu Teh-Chun (Zhu Dequn, B.1920), Vertige Neigeux, Painted in 1990-1999, oil on canvas, diptych, each 200 x 200 cm, overall 200 x 400 cm, The Painting was sold for HK$ 45,460,000 at Christie’s Hong Kong Asian Contemporary Art & Chinese 20th Century Art Sale on November 29, 2009. Courtesy of Christie’s Images Ltd

“Our observation speaks the same as figures; there were frequently several-minute-long fierce competitions among bidders on the phone and in the packed hall of about 400 people at Christie’s international evening sale. Bidding is often intense, especially on those renowned Asian masters and their prominent works, not just at evening, but also at day sales. The France-based Chu Teh-Chun had one of his largest snow landscapes Vertige Neigeux achieve a new world auction record at HK$45.5 million. Sanyu and Zao Wou-Ki both have refreshed their Top 10 World auction records.

“Back in 1996, A Reclining Nude by Sanyu was sold for HK$955,000; another Reclining Nude from the Taiwan’s Yageo Collection achieved HK$ 7.3 million recently. In 2009, Sanyu’s Cat and Birds and Potted Flowers in a Blue and White Jardinière respectively achieved HK42.1 and 34.8 million. This is one of those ample examples that shows the continued demand and popularity of the 20th Century Chinese art market.”

Evelyn Lin offers her interpretation, “It’s a very different situation for the Chinese contemporary art market because in Western markets many pieces can make over 10,000,000USD and in the Asian market there are only very few examples that can reach a certain price like this. So in terms of price structure, I would say that Chinese contemporary art is still at a very affordable range and I personally believe there is still room to grow.

Wang Qingsong, Requesting Buddha, 1999, colour photograph, 180 x 110cm, Courtesy of Private Collection, USAWang Qingsong, Requesting Buddha, 1999, colour photograph, 180 x 110 cm.
Courtesy of private collection, USA

“In terms of result, especially last time in our Guy Ullens singer owner evening sale, in this collection we were selling important historical works by all of the major artists and the sale was 100 per cent successful, but it was also very good proof that the market has become more selective. I strongly believe this type of trend can help the market stand longer, so for me I don’t think there is a bubble coming up in the near future.”

Urs Meile, on the other hand, is cautious. “I agree there is always the danger of a bubble, but bubbles can form out of many different situations, so if the question goes in the direction of is there a chance of a crash, or is there a chance we again have a bubble, I say of course yes, but it’s not because China comes out of the same situation as Japan did. Japan was very much a part of the international establishment; it is an open country and a completely different situation than China.

“Talking about the internal situation and the potential of the society in China nowadays compared to the potential of the society on the market in Japan at that time, it’s incomparable because the potential is clearly bigger if you think about four billion people or if you talk about some hundred million. The potential of the market is different, which does not mean again of course that you cannot have a bubble. I do not see it coming in the same timeframe, but it is very complex.”

Wang Xingwei, Untitled (flowerpot), 2011, oil on canvas, 240 x 200 cm, Courtesy of Galerie urs Meile, Beijing - LucerneWang Xingwei, Untitled (flowerpot), 2011, oil on canvas, 240 x 200 cm.
Courtesy of Galerie urs Meile, Beijing – Lucerne

Michael Frahm is more positive, “I don’t think we will see the market crash. The art market is global and so much bigger today than ever before and it will continue to grow. China is instrumental in that. But there is also stability, a real structure and a very solid support in that growth. The elitism of the ’80s has long gone and now people from all walks of life are taking part and being allowed to play a part in the market. There is a huge interest and demand for contemporary art, and open access through the internet, auction houses, art fairs, etc, means the demand will only continue to intensify. The bottom line is, we are in a very different market from 25 years ago.”

So will the Chinese supersized giant rule the art world in the future? Wang Qingsong is doubtful. “I don’t think Chinese contemporary art has a large global market. Some great artworks do have big demand, like any other important artists from other countries. Like the Chinese economy, Chinese contemporary art cannot leave the support from the rest of the world. In a country with a socialistic concept, globalisation will be hard to realise.”

Will, then, the fast-food attitude of the art market move on, hungry for the next new thing? “Of course China was, or still is, somehow of a trend.” concludes Urs Meile. “It is important to realise what happened in the Western world; if you think back to the ’50s and ’60s, there were the Americans. The Americans are still there, but of course this specific interest of the spotlight moves from one part of the world to the other, but I’m sure that China as well will lose its hype, which I think is very good because then we are not talking about countries, we are not talking about the product, we are talking about art.

“It makes it interesting to have art from all over the world because different mentalities create history. There will always be top artists, but in the future we will see Chinese art as one important part of the international art scene, and by then we will probably have India, or something else that we don’t know yet, to be hyped again. If we talk about the art market, then I’m really convinced that China and Asia will play a major role.”

Michael Frahm speculates, “I think the rise of mainland Chinese art collectors is becoming more and more significant and we will continue to see the impact of China’s growing influence in the market. To sum the whole thing up, I think in our lifetime we will see a billion dollar artwork sold, and the chances are very high that it will be a Chinese buyer.”

by Bruna Volpi

From the Glass Archive – Issue Eight – Power

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