The International Herald Tribune sums up the state of the Chinese Contemporary art market:

“The market for Chinese contemporary art had long been overheated. Many artworks and artists are overpriced and overrated, notwithstanding the fact that they are good artworks by good artists. Needless to say, there is a lot of junk being traded as “meaningful’ artwork,” said Daniel Komala, the president of Larasati Auctioneers in Singapore.

“For good artworks, the bubble has deflated significantly; for meaningless artworks, the bubble simply burst,” Komala said. “The market is looking for a new equilibrium, which is somewhere between 30 to 40 percent below its peak.” [ . . . ]

Vinci Chang, head of 20th century Chinese and Asian contemporary art at Christie’s Hong Kong, also sees a bright side. “This is a buyer’s market,” she said. “If you have a keen eye and know what is best, this is probably the best time to get the best work at the best price.”

Komala said: “As long as the price of the top Chinese contemporary artists such as Zhang Xiaogang and others is still a fraction of Damien Hirst’s,” the buyers will return.

Chinese Contemporary Art Bubble Goes Flat (International Herald Tribune)