Here’s a lesson in the value of a free press. China’s Xinhua News Agency is a government organization. So when they come out with positive news about the art market in China itself–as opposed to the Western auctioneers in Hong Kong–it is hard to read the story as anything but propaganda. Nonetheless, the good news here may be real and is worth focusing on in detail. China Guardian Auctions reported strong sales last week of 106 million yuan and an 88% (auspicious, eh?) sell-through according to Kuo Qin, the company’s Vice President:

“Judging from the situation in the first three months of this year, the art market will not collapse at all,” Kou said. However, he admitted the financial crisis has indeed affected some Chinese art owners who have been more reluctant to sell their works, saying they would rather wait for a better time. Foreign art owners seem to be doing just the opposite. In February, the company was stunned while soliciting auction items in New York and Tokyo for the first time. More than 1,000 people came to consult with Guardian Auctions every day. “Overseas owners think the Chinese market is so far so good — compared to many western markets.”

The secret of the Beijing auctions’ success was a focus on lower-priced items:

“This year we chose art work very carefully. We accepted fewer works priced as high as 10 million yuan, but it doesn’t mean costly works cannot be sold. People will buy as long as they are good,” Ma Zhefei, assistant to the general manager of the Beijing Poly International Auction house told Xinhua. On March 27, or opening day for calligraphy and paintings, the auction house sold about 80 percent of the items it put up for bidding. Sales totaled more than 17 million yuan (2.5 million U.S. dollars), which the company called a “pleasant surprise”. The same day last year, Poly International sold 52 percent of items up for bid for 9 million yuan. [ . . . ]

Art market still strong, auction houses optimistic amid financial crisis (Xinhua News Agency)