Art Market Monitor

Global Coverage ~ Unique Analysis

  • AMMpro
  • AMM Fantasy Collecting Game
  • Podcast
  • Contact Us

Sotheby’s Buys In to Beijing

September 10, 2012 by Marion Maneker

 

Charlotte Burns spies a a telling detail in Sotheby’s financial disclosure. The auction house has gained a foothold in Mainland China with access to Beijing’s new freeport:

Sotheby’s has signed a ten-year agreement with the state-owned Beijing GeHua Art Company on 3 September, investing $1.2m for 80% ownership of the firm. The move “will strategically enhance Sotheby’s long-term presence in mainland China and allow it to potentially capitalise on the opportunities presented by the Chinese art market,” according to Sotheby’s financial report to investors. The agreement means the firm can now operate in Beijing—foreign auction houses are restricted to only doing business in Hong Kong, unless they partner with a domestic firm in the mainland.

Financial analysts have welcomed the agreement and Sotheby’s shares rose to $35.74 after the news broke. Sotheby’s “brings art market gravitas (and a small investment) while Beijing GeHua Art Company brings Chinese market prerequisites,” according to a report published by David Schick, the managing director of Stifel Nicolaus Equity Research. The agreement “shows the power of the Sotheby’s brand—with just $1.2m investment [Sotheby’s] has essentially been invited to partner with a state-owned art venture,” the report adds.

The move will allow Sotheby’s to take advantage of a planned freeport that GeHua is developing within the Tianzhu Free Trade Zone in Beijing.

Sotheby’s Gains Foothold in Mainland China (The Art Newspaper)

More from Art Market Monitor

  • Stalking the Old MastersStalking the Old Masters
  • Fakes, Remakes and the Francis Picabia MarketFakes, Remakes and the Francis Picabia Market
  • Diane Arbus Image of New York Family Highlights Christie’s Photographs SaleDiane Arbus Image of New York Family Highlights Christie’s Photographs Sale
  • Gleadell Anticipates Sotheby's AnnouncementGleadell Anticipates Sotheby's Announcement
  • ‘Lost  Leonardo’ Painting, Recently Sold for “Several Hundred Million Euros” Seized‘Lost Leonardo’ Painting, Recently Sold for “Several Hundred Million Euros” Seized
  • Basquiat Takes Over Market LeadershipBasquiat Takes Over Market Leadership

Filed Under: General

About Marion Maneker

Want to get Art Market Monitor‘s posts sent to you in our email? Sign up below by clicking on the Subscribe button.

Top Posts

  • Keith Haring’s 1989 Retrospect Comes to Sotheby’s London Prints Sale
  • Asian Art Market Continues Rapid Ascent at Sotheby’s $270 M. Hong Kong Sales
  • Four of Picasso's Women Valued at $28m Come to Christie's from Rose-Walters Collection
  • Tony Podesta's Secret Art Buying
  • How to Chant Like an Auctioneer
  • Roy Lichtenstein’s Top Ten Auction Prices
  • Norman Rockwell's Not Gay. But Is He a Great Artist?
  • Tracey Emin Neon Lights Up Sotheby's 'Contemporary Showcase' Pop-Up
  • Sotheby’s to Sell $40 M. Monet Water Lilies Painting in May
  • David Hockney's $20m Pacific Coast Highway & Santa Monica
  • About Us/ Contact
  • Podcast
  • AMMpro
  • Newsletter
  • FAQ

twitterfacebooksoundcloud
Privacy Policy
Terms & Conditions
California Privacy Rights
Do Not Sell My Personal Information
Advertise on Art Market Monitor