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How to Build a Chinese Art Museum

June 19, 2018 by Marion Maneker

When Enid Tsui asked Valerie Wang Conghui, the advisor working with Zeng Baobao, to build an art collection—already 200 pieces strong—for Fantasia Holding’s museum in Xinjin, China, why a Hong Kong-listed resort operator and property developer would build a museum in Sichuan province, the answer was simple: “Having a museum adds value to a company, both in terms of branding and by spreading good taste and design ideas…”

In the four years since Zeng decided to fill the museum, the two have been on journey of discovery through all of the world’s art fairs and auctions.

“Initially, there was no clear strategy about the museum’s content and we bought what we liked: fun works such as Li Jin’s contemporary ink paintings. But as we spent more time looking, a theme for the museum developed naturally: modern and contemporary art that conveys traditional Chinese aesthetics.”

But to be a museum, Zhi needs art worthy of being loaned out to other institutions. So the pair invested in works by Zao Wou-ki and Zeng Fanzhi. Whether those two artists were sought because of their art historical importance or their price points is something Tsui leaves unclear in the story.

Chinese art museum finally takes shape with big-ticket items bought on a billionaire’s budget  (South China Morning Post)

The Challenges to India’s Art Market Expansion

April 10, 2018 by Marion Maneker

Quartz has some more details on the Indian art market. Specifically, Quartz points out that Sotheby’s new initiative poises it to gain ground on international hybrid online/live auction house Saffronart and local firm AstaGuru. Christie’s has pulled back from its sales in India as part of the new CEOs re-alignment of costs. Nonetheless, both Christie’s and Sotheby’s have been able to maintain significant market share (above) in the Indian art market through their New York and London sales.

Sotheby’s Mumbai sale has advantages as well as limitations:

The live auction, which will include items specially curated for Indian collectors, is a step forward for the country’s art market. Valued at Rs1,460 crore (around $219 million) in 2017, according to a recent KPMG-FICCI report , this market declined 6% year-on-year following demonetisation and the launch of the goods and services tax (GST). Under the latter, many artworks now fall under the 12% tax bracket, making them more expensive than before.

Seeing Flush New Buyers from South Asia, Sotheby’s Announces Indian Sales

April 10, 2018 by Marion Maneker

Tyeb Mehta, Durga Mahisasura Mardini ($3m)

Sotheby’s recently installed MD for Europe, Middle East, Russia and India, Jan Prasens, is making his first big move by building on some of his team’s recent successes. Last month, Sotheby’s South Asian sale of reached $15.5m, the highest total in the last three years, with a strong 84% sell-through rate. New clients seem to be streaming into Sotheby’s sales rooms in New York and London.

Now Sotheby’s is going to the source. Two years ago, Sotheby’s opened an office in Mumbai. Today, Sotheby’s and Prasens have announced plans for holding sales in Mumbai beginning in December of this year.

Although South Asian art is sold in New York and London, India has export laws that would favor holding sales domestically if there is a critical mass of buyers there. Previously, the buyer base and currency bias has favored sales abroad. But Sotheby’s has been making some noise in the press recently about the spending power emerging domestically.

“In the past five years, the number of Indians across all Sotheby’s global sales has almost doubled” Gaurav Bhatia, Managing Director, Sotheby’s India said in the release repeating comments made to the Indian press in recent months. “Indian clients have bought over $250 million of art over this period. In our most recent sales of Asian art in New York in March,” Bhatia said, “40% of buyers were new to Sotheby’s.”

“We have seen exponential growth in activity by Indian collectors at Sotheby’s,” Edward Gibbs, Sotheby’s Chairman of India and the Middle East, said in the same release, “not only in our sales of South Asian art, but also in our wider international auctions. This strong uptick is part of a global pattern of increased liquidity within the market.”

The first sale in December is entitled  ‘Boundless: Mumbai’ —echoing other sales in the Gulf states region. It will include a mix of works by South Asian artists along with artworks by western artists inspired by South Asia sourced from collections across the sub-Continent and globally, the release says.

One of Tyeb Mehta’s most important works, Durga Mahisasura Mardini has been confirmed to lead the December sale. This seminal painting was commissioned directly from the artist in 1993 and has remained in a private collection since, appearing on the market for the first time later this year. It is among the most valuable works of modern South Asian art ever to be offered at auction. Two out of the three highest prices for the artist have been set at auction within the last year, attesting to the strength of Tyeb Mehta’s market. His current auction record stands at US$3.6 million.

Yamini Mehta, International Head of Indian & South Asian Art at Sotheby’s said: “One of the most important artists in the country and a leading figure in the history of Indian modernism, Tyeb Mehta’s ‘Durga Mahisasura Mardini’ is possibly the most important work in the artist’s oeuvre. A symbol of victory of good over evil, this painting celebrates the spirit of India. It is one of most provocative portrayals of goddess Durga defeating the mythical buffalo demon, Mahisasura. The painting celebrates hope and renewal instilled in Indian mythology and reconnects with Indian values. The oblique allusion to the colours of the Indian flag makes it a brilliant and powerful ode to the spirit of the country. This painting is a prelude to the artist’s iconic ‘Celebrations’ and ‘Mahisasura’ series, making it amongst the artist’s most significant and rarest works.”

China Guardian’s $50m Beijing Sale Reveals Shift in Market

July 13, 2017 by Marion Maneker

Enid Tsui follows up on China Guardian’s coup last month when it made a massive sale in Beijing of Huang Binhong’s Yellow Mountain (1955) for 345 million yuan (HK$396 million.) Huang hasn’t been among the platinum-plated names in Chinese classical ink painting like Zhang Daqian and Qi Baishi until now. But Tsui suggests there’s a bit more going on behind the scenes with this sale than simply the emergence of a new name in Chinese Classical painting.

First of all, the sale marks the arrival of China Guardian’s Guo Tong as powerful force in Mainland sales. Second, the Mainland is showing strength again after years of sales migrating to Hong Kong. Finally, the return of big prices in art in China itself may be a signal that other asset sectors are too clogged with government controls. The spillover is coming back to the art market.

Controls on capital leaving the country mean cash has to be stored in China at a time when there are fewer assets that can be accessed. The Huang was bought be a company, not an individual, adding to the speculation.

Here’s Tsui speaking to Guo: Continue Reading

Indonesia’s $365bn Windfall Looking for Places to Invest

April 17, 2017 by Marion Maneker

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Bloomberg has a report of private banks vying for the newly revealed mountain of money in Indonesia. Others will surely take notice considering the report considering the list of assets the cash might be redirected toward includes some that trade like art:

an Indonesian wealth-management market made more alluring after the nine-month tax amnesty spurred individuals to reveal some $365 billion of previously undeclared assets. About $289 billion of that total is parked onshore, money that the government recently permitted to be invested in assets including gold, property and infrastructure projects.

DBS Seeks to Tap $289 Billion Opportunity in Indonesian Wealth  (Bloomberg)

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