Table of Contents Foreword . 4 About the China Association of Auctioneers (CAA) . 5 About artnet . 6 Key Findings . 7 Introduction . 10 1 Market Overview . 26 1 1. Industry and Market Scale . 27 1 .2 Market Share . 33 2 Lot Composition and Price Distribution . 37 2 1. Lot Composition . 38 2 .2 Price Distribution and Average Prices . 43 2 3. High-Priced Lots . 47 Appendix 1: 2014 List of Global Chinese Antiques and Art Auction Houses . 53 Appendix 2: 2014 List of Lots Sold for Over 10 Million RMB . 94 Notes . 139 Contact . 143 4 Global Chinese Art Auction Market Report 2014 Foreword artnet and the China Association of Auctioneers (CAA) are The Chinese art and antiques market has been undergoing pleased to present the third edition of the Global Chinese a period of volatility since 2012 . To help readers better Art Auction Market Report, taking an in-depth look at the understand the social-economic factors behind the Chinese art and antiques market in 2014 . Today, artnet is volatility, why each market sector performed differently, the undisputed leader of the art world online . As the art and where the market is headed, we again invited the world continues to evolve and expand, artnet intends to renowned art economist Dr . Clare McAndrew to write the maintain its leadership role and help connect millions more introduction of the report . We hope that the big picture people around the world who love and appreciate art . context provided by the introduction, coupled with the detailed analysis of reliable market data in the report, can In a continued effort to present the most accurate help create a deeper understanding of the global market representation of the auction market in China, artnet has for Chinese art . again partnered with CAA to produce a definitive study of the market, which only these two trusted organizations Once again, we would like to express our sincere can provide . gratitude to all who have made this report possible . The Global Chinese Art Auction Market Report is the only report of its kind to publish auction results from mainland China that have been vetted by a third party organization with insider knowledge of the state of the market in China . The 2014 edition of the report continues to examine the global sale of Chinese art and antiques, emphasizing quality and accuracy of the data, with the goal of creating a new standard of transparency . ©2015 Artnet Worldwide Corporation. ©2015 China Association of Auctioneers. All rights reserved. Global Chinese Art Auction Market Report 2014 5 About the China Association of Auctioneers (CAA) The China Association of Auctioneers (CAA) is the only In 2010, the Ministry of Commerce of the People’s national association of the auction industry in China . Its Republic of China issued the Standard for Auction of functions include auctioneers administration and auction Cultural Relics and Art Works . Drafted by CAA, this house regulation and supervision, as outlined in the marked the beginning of the standardized development of Auction Law of the People’s Republic of China, as well Chinese auctions . Currently, the Chinese auction industry as business promotion, policy coordination, information is regulated by one national standard and five industry services, and consulting . codes of practice . Established in 1995, CAA has been the most important In 2012, CAA initiated the promotion and execution of platform in the world for establishing connections within auction industry standardization, and has certified 56 the Chinese auction industry, making every effort to antiques and art auction houses, so far, as houses that promote the development of the Chinese auction industry have met the industry standard . This act marked the and market . Revitalized in 1986, and led by CAA, the industry’s transformation, from quantity driven growth to Chinese auction industry has entered a new era . quality-driven improvement . In 1996, the Auction Law of the People’s Republic of In 2014, CAA collaborated with artnet to successfully co- China took effect after several years’ effort by CAA . As host the international summit, The Chinese Art Market: the first auction law in China, it laid a solid foundation for Present and Future, in New York . CAA’s proposal of the standardized development of Chinese auctions . establishing an international auctioneers association was well received by fellow organizations . In 1997, CAA certified the first national auctioneers . Currently, 12,380 national auctioneers have been trained In the future, with the globalization of the Chinese auction and certified, and serve as the backbone of the industry . industry, CAA will continue to play a leading role in building a platform for international communication, and In 2005, CAA total membership reached 1,000 for the first will work with fellow organizations to promote a better time . Today, we have more than 2,500 members, including integration and development of the global auction market . all of the most well-known and prestigious Chinese auction houses . ©2015 Artnet Worldwide Corporation. ©2015 China Association of Auctioneers. All rights reserved. 6 Global Chinese Art Auction Market Report 2014 About artnet artnet is the leading place to buy, sell, and research fine In 1999, artnet went public in Germany . Since 2007, art, design, and decorative art online . artnet has been listed in the Prime Standard of the Frankfurt Stock Exchange, the segment with the highest artnet was founded in 1989 with the goal of bringing transparency standards . transparency to the art world . In the past, the lack of objective price information was a stumbling block, for In 2008, artnet pioneered the first online auctions buyers in particular, that prohibited the market from platform exclusively for fine art, artnet Auctions . With growing . artnet Auctions, collectors can both buy and sell art 24/7, with instant turnaround and lower commissions . The art business has always been international; however, before artnet, it was managed locally in relatively The newest branch of our valuation products, artnet inefficient markets by tens of thousands of geographically Analytics Reports, covers over 600 Modern and disparate art dealers, galleries, auction houses, book Contemporary artists . This product allows users to publishers, museums, and collectors . benchmark the market performance of artists, art categories, and customized sets of artworks against For 25 years, artnet has worked to transform the market . financial indices, such as the S&P 500 and Dow Jones, or We provide a range of services to connect buyers and other assets, such as gold . sellers online, and have a suite of valuation tools to make market information instantly accessible . In February 2014, artnet launched a 24/7 global art newswire: artnet News . artnet News is a one-stop The artnet Price Database provides users with a global platform for the events, trends, developments, and standard of price comparison . The database includes over people that shape the art market and global art industry, 9 million auction results compiled from more than 1,600 providing up-to-the-minute analysis and commentary, international auction houses dating back to 1985 . with the highest possible standards in cultural journalism . Launched in March 2015, artnet News China delivers Another pillar of the artnet business is the artnet the same high-quality, timely content in Chinese, and Gallery Network, which was introduced in 1995 . As the publishes original news for the local and regional largest network of its kind, this product features 1,500 Chinese-speaking audience . galleries, and approximately 170,000 artworks by nearly 35,000 artists . The Gallery Network offers the world’s Today, artnet is the undisputed leader of the art world most comprehensive overview of artworks available for online . As the art world continues to evolve and expand, purchase . artnet intends to maintain its leadership role and help connect millions more people around the world who love and appreciate art . ©2015 Artnet Worldwide Corporation. ©2015 China Association of Auctioneers. All rights reserved. Key Findings 8 Global Chinese Art Auction Market Report 2014 Key Findings – 2014 marked another cooling period for the global – Fulfillment of payment has long plagued the auction auction market of Chinese art and antiques, as market in mainland China . In 2014, up to 63% of all lots worldwide sales fell to $7 9. billion (¥50 5. billion), a sold for over ¥10 million were left unpaid or only partially 31 3%. decline since the market’s peak in 2011 . paid . This non-payment rate is up 22% from 2013 . – By the end of 2014, there were 721 auction houses – The art market in mainland China is supported primarily dealing in Chinese art (+9 0%. year-on-year), which is by auction sales, which account for approximately 70% the most to date . of the market’s value, while gallery sales represent the remaining percentage . This breakdown is in contrast – Regionally, sales in mainland China witnessed a 9 3%. to other art markets, where gallery and retail sales drop year-on year (and a 40 0%. decrease since 2011), dominate . while the overseas market was considerably more stable, and saw only a marginal decrease of 1 1%. – The Beijing and Tianjin region continues to hold the majority market share in mainland China; however, – Looking at the external market, Asia (supported by decreases in this share suggest the market is slowly Hong Kong) fared particularly well, as sales increased gaining ground in other regions, particularly the 5 3%. Sales in Europe and North America were much Yangtze River Delta region . weaker, and fell 29 7%. and 8 0%,. respectively . – Demand for Chinese works is reportedly stronger – The number of lots consigned globally in 2014 was overseas than in mainland China, as limited liquidity comparable to 2013; however, demand for these lots bolstered a sell-through rate of 60 9%.