The Financial Times reports on the emergence of Chinese art funds. Although few Western art funds have been able to show consistent returns or establish themselves as stable category, the FT presents this interesting but unsupported statement:
“When a country’s GDP per head reaches US$3,000, its citizens will have [demand for] art investments,” a spokesman for Shanghai-based Noah Wealth Management said. “China’s GDP per head reached $3,100 in 2008. It is a good time to start an art fund now.”
Noah Wealth Management launched a fund in November to invest in Chinese art works such as paintings and ceramics.
Earlier to market was China Minsheng Banking Corporation, which launched its first art fund in June 2007 and a second in July 2009. Beijing-based Zhong Bo Auctions Company and Shanghai-based Terry Art Fund Management also have two funds apiece.
Terry Art’s first fund, Red Coral I, which launched in May 2009, returned 25 per cent in its first year according to Wang Kai, the group’s Shanghai-based chief operating officer. Terry Art’s two funds, Red Coral I & II, invest in Chinese ink paintings, classic oil paintings and contemporary art.
Chinese Managers Draw on Art (Financial Times)