Chinese buyers are popular additions to any saleroom crowd in Britain. They have a lot of cash and are eager to spend it. Get a few of them competing for an item, as happened at Bonhams’ last auction of Chinese fine art in London, and pre-sale estimates can start to look almost amusingly low.
A set of imperial “melon” teapots that was expected to fetch £20,000 to £30,000 sold for £1.3m, for example, while a yellow jade sceptre went for £1.3m when the estimate was £120,000.
“Nobody can ignore the effect that the Chinese have had on the Asian art market,” said Matthew Girling, chief executive of Bonhams.
“Everyone points to the £43m vase that has not yet been paid for [a Qianlong porcelain vase sold in November, though auctioneer Peter Bainbridge refused to comment on any aspect of the sale], but the prices being paid more generally for Chinese works of art by Chinese buyers are extraordinary.
“They make up only a small segment of buyers by number, but they are starting to make a significant impact at the top end of the market.”
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Their interest in Chinese art is driven, at least to some extent, by a desire to repatriate artefacts removed from their country by travellers or colonial rulers, but they are not buying just anything dug out of dusty attics, said John Ayton, a director of Walpole, the British luxury brand specialist.
“Some very high prices are paid for high-value items, but there is lower demand for lesser pieces,” he said. “They are also becoming more sophisticated and better advised, as with a lot of newly wealthy individuals.”
Russian buyers’ interests have also changed, said Jonathan Horwich at Bonhams. “Obviously they are buying Russian art — that’s where they started — but then they migrated to Impressionists, modern art, old masters and so on,” he said.
“That’s happening with Chinese buyers too. They are showing a particular interest in Victorian British art, for example.”
They are also starting to make their presence felt in other areas. Wine, particularly the “lucky” 2008 vintage, sells well, and at one of Bonhams’ recent whisky sales in Scotland nearly 40% of the buyers were from China. Christie’s sales in Asia indicate that jewellery and watches are also popular, and works by Picasso and Warhol are catching their attention too, said Jussi Pylkkanen of Christie’s.
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The big international auction houses are not the only ones benefiting from Chinese wealth. Allison Earl Woessner, managing director and co-owner of Auction Atrium, raised £670,000 at a sale of Chinese art in May — double the amount achieved in the previous sale six months earlier. A 20th century scroll painting went for £58,000 and a pilgrim vase for £56,000, while 13 other items went for more than £10,000.
“The internet has levelled the playing field as people can see the catalogues online and buy from anywhere,” she said.
Robert Stones, owner of Peter Wilson in Nantwich, Cheshire, agreed. Most of his customers are still in Europe and North America, but the internet has undoubtedly broadened his customer base.
“About 40% of our last fine art auction was sold online. The internet has given sellers the confidence to use provincial salerooms.”
This logic also applies to Chinese porcelain found in house clearances, which is how Bainbridges, a probate specialist, ended up with Chinese buyers vying for the Qianlong vase.
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“A number of auctioneers have sold things to Chinese buyers who have not then completed the sale,” said Stones. “That is very difficult to manage when you are on different continents and speak different languages.”
Woessner, too, is aware of these risks. “It is something we have been hearing about a lot,” she said. “We know that if you get huge bids from a Chinese buyer it is going to be a bit of work to follow through.
“It helps that we have a Chinese speaker. We have strict seven-day terms. Sometimes Chinese buyers are a bit flexible about their timing, so we have to call them to follow up, but the end result has always been fine.”
Salerooms experience similar problems with buyers from other new markets, notably Russia and India, Stones added. “I think it’s a cultural difference and a lack of familiarity with [western] auction etiquette.”
For all the excitement created by Chinese buyers it is important to remember they remain a minority. “European and American buyers still lead the way,” said Pylkkanen. The top item at Christie’s recent Impressionist sale in London, for example, was an £18m Picasso bought by Dimitri Mavrommatis, a Greek collector.
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Many buyers are now what Pylkkanen calls “Medici collectors” — people who buy the most beautiful items across a number of categories rather than trying to amass particular collections. “They are driven by a desire for excellence, not completion,” he said.
And in many cases new buyers are jumping straight in at the deep end rather than easing themselves in, Horwich added. “In the old days they would come in and spend £5,000 or £10,000, then perhaps a bit more next time. Now they are coming straight in and going for the top thing at £100,000 or £200,000.”
This eagerness to spend is good news for salerooms at the top end of the market. “Last year was a record year for us and we are on a par this year,” Pylkkanen said. “Almost without exception our blue-ribbon sales have outperformed expectations.
“It may seem counterintuitive, but we saw the same thing the year after the 1929 crash — 1930 was a great year. There is a certain sense of security in fine art. A Picasso will always be a Picasso, a Raphael stays a Raphael.”
And if six different Chinese buyers want that Picasso, so much the better.