Cracks Appear in China's Art Market

China's art market is booming, but payment defaults, fakes and inflated prices are proving a headache for collectors and auction houses.

Published

9 months ago

Categories

Finance, Arts & Society

Topics

Asia

People

Kevin Ching, William Chak

Places

China

Transcript

Art Collector William Chak has been studying the Chinese market for years. But these days, he doesn't like what he sees. (SOUNDBITE) (English) ART COLLECTOR, WILLIAM CHAK, SAYING: It's like a bomb...everybody thinks if I buy something old, if I buy something antique, I must within one year I must be able to get double." He says the market has grown so quickly, new investors are making big mistakes. (SOUNDBITE) (English) ART COLLECTOR, WILLIAM CHAK, SAYING: "They spend a billion money, whole room is new, but its all fake." China's already by far the world's top art market in terms of auction revenues. With Chinese artists topping sales by giants like Andy Warhol and even Picasso. But behind the impressive numbers - are big concerns, like many art buyers defaulting on their purchases. Insiders have attributed that to everything from worries about fakes to funding problems. Colin Sheaf of Bonhams. (SOUNDBITE) (English) BONHAMS CHAIRMAN, UK AND ASIA, COLIN SHEAF, SAYING "Trades are being treated as completed when in fact for one reason or another the objects have not been paid for. This of course completely distorts our understanding of the extent to which the art market in China at auction has been growing." Kevin Ching of Sotheby's says even auctioneers can have a hard time reading the market. (SOUNDBITE) (English) CEO SOTHEBY'S ASIA, KEVIN CHING, SAYING: "I've heard stories that for example there would be houses that might allow people to bid on their own pieces, so as to push up the prices, certain records and results are perhaps not as accurate as there should be." (SOUNDBITE) (English) REUTERS REPORTER, TESSA DUNLOP, SAYING: "Sales of Chinese art have cooled down in recent months as credit dries up. But some say that's exactly what the market needs to avoid further overheating, and give authorities time to tighten regulation." But for now, if you're thinking about buying Chinese art - it pays to play it safe. .