Chinese Art Market Is on the Rise

The Chinese art market in 2021 was surprisingly strong despite the pandemic and threats of a recession, according to the tenth annual Global Chinese Art Auction Market Report. Data from Artnet's Price Database shows that global sales at auction recovered by 60% year over year. This was due to a "return to normal" business and an increase in global financial wealth, which rose by 10.6% from 2020 to 2021.

Global auction sales for Chinese fine art and antiquities reached $7.4 billion last year, marking a 30% increase from the previous year's sales of $5.7 billion. Although the market has grown, it still has a ways to go before it reaches the all-time high of almost $12 billion in 2011. In mainland China, where strict lockdowns and a zero-Covid policy are still in place, $5.9 billion in sales were generated, a 36% increase from 2020, accounting for nearly 80% of total sales. Sales of Chinese art and antiquities overseas totaled $1.5 billion, a 13% increase. In comparison, the market for Chinese art decreased by almost one third in 2020.

Europe continues to be the most successful region for total sales value, with a 48% increase when compared to the previous year, and 44% of total overseas revenue coming from lots sold in Europe. However, the market share in Asia (outside of mainland China) and North America has slowed down.

The report also found that the market in mainland China experienced a 36% growth from the previous year, driving the global market rebound of Chinese art and antiquities, achieving the highest numbers since 2014. Despite economic fluctuations and pandemic pressures, the opening of new art museums, a return to art fairs, and exhibitions organized by mainland auction houses such as Yongle and China Guardian helped promote interest and restore confidence among collectors.

Both the number of lots offered and the number of lots sold increased year-over-year by 31% and 29%, respectively. However, within the high-priced market of lots priced above ¥100 million ($14 million), only 11 examples of Chinese art and antiques were sold in 2021, compared to 17 lots in 2020. The study notes, though, that the number of lots sold above ¥10 million ($1.4 million) increased by 8% to 833 lots, the largest amount in nearly a decade. Within the middle market, of lots priced ¥500,000–¥10 million ($70,000–$1.4 million), 9,017 lots were sold, accounting for a 40% increase compared to 2020.

The pandemic also brought about technological advances in online bidding for remote sales as well as online-only auctions. In 2021, mainland auction houses hosted more than 5,800 online-only sales, an increase of six percent in total sales volume.