Luke Hu
School of Economics, Huaqiao University
Renaissance 2023, 2(03); https://doi.org/10.70548/ra142104
Submission received: 4 August 2023 / Revised: 2 September 2023 / Accepted: 20 September 2023 / Published: 20 October 2023
Valuation Logic Behind Top Auctioned Artworks
The Imperial Green Jadeite Buddha Pendant
The high-end jadeite market in China has consistently demonstrated robust performance, particularly for top-tier jadeite, which reflects the unique passion of Chinese collectors for premium quality pieces. The auction’s highest-selling item, a Buddha pendant crafted from imperial green jadeite, underscores this affinity. Imperial Green is among the rarest and most coveted shades of jadeite, characterized by its deep, uniform green hue that neither leans towards blue nor yellow. This rarity significantly influences its market value, making Imperial Green the epitome of luxury in jadeite, highly sought after due to its scarcity.
The value of Imperial Green jadeite isn’t just tied to its color and texture but also to the limited availability of high-quality raw stones. The Buddha pendant showcased an exceptional level of transparency and luster, further enhancing its value. High-quality natural Imperial Green jadeite stones are rare in the market; thus, when they do appear, they command premium prices.
The carved Buddha in the pendant symbolizes fortune, peace, and wisdom in Chinese culture. Despite the simplicity of its carvings, which may lack novelty, it is widely celebrated in the market. These pieces are not merely jewelry; they are symbols of culture and spirituality, attracting collectors who value traditional cultural significance. Collectors and investors are often willing to pay a premium for artworks steeped in cultural and historical value, as these pieces offer stable and market-proven worth. In contrast, innovative themes might require time to gain market recognition and may exhibit greater value volatility.
Early 20th Century Chinese Painters
Among the top ten artists featured in the Yongle 2024 Spring Auction, Li Keran, Wu Guanzhong, and Lin Fengmian stand out as revered Chinese painters from the early 20th century. Li Keran, having studied under masters like Qi Baishi, was profoundly influenced by traditional Chinese painting, particularly excelling in landscape painting. He skillfully integrated traditional brushwork with Western techniques of light and space, lending a distinct modernity to his works.
Wu Guanzhong and Lin Fengmian both pursued advanced studies at the École Nationale Supérieure des Beaux-Arts in Paris, where they absorbed elements of Western modern art. Their portfolios include both oil paintings and traditional Chinese ink paintings. Along with their contemporaries, such as Xu Beihong and Li Kuchan, they championed the modernization of Chinese painting and the nationalization of oil painting, advocating for a synthesis of Chinese tradition and modern spirit. This movement significantly propelled the modernization of Chinese art.
These artists are foundational figures in modern Chinese art education. Their works, recognized for their historical significance, rarity, and market esteem, have become invaluable assets within the collecting community, commanding high valuations. As time progresses, the value of these artworks is likely to appreciate further, reflecting their enduring appeal and significance.
Leading Figures of Chinese Contemporary Arts
Towards the end of the 20th century and the beginning of the 21st, as globalization progressed and China’s prominence on the world stage grew, international interest in Chinese art and culture significantly increased. Chen Yifei, as one of the representative artists of this era, naturally garnered considerable international attention. His artwork, which employs Western painting techniques to depict traditional Chinese landscapes and figures, developed into a unique style of romantic realism. Effective media promotion and art marketing strategies have allowed his works and reputation to be widely disseminated internationally. Chen Yifei’s artworks have been extensively exhibited worldwide and collected by museums and private collectors across various countries, enhancing his global stature. His success on the international art market, underscored by high auction prices and strong sales performance, has led to a high valuation of his works.
Although Zhou Chunya, Zhang Xiaogang, and Chen Yifei are all leading figures in contemporary Chinese art, their rise to prominence followed Chen Yifei’s. Unlike Chen, whose works are more rooted in realistic portrayals, Zhou Chunya and Zhang Xiaogang have ventured beyond simple realism, embracing strong elements of expressionism in their art. As China progressed through its era of Reform and Opening-up, artists of this period boldly broke away from traditional painting conventions, infusing their works with the innovative spirit of modern art.
Zhou Chunya, who studied in Germany, is renowned for his distinctive artistic style and bold use of color. The piece featured in the recent auction belongs to his iconic “Peach Blossom” series. Influenced by the record-breaking sale of his early Tibetan-themed work “Spring is Coming,” which fetched RMB 86.25 million at a 2020 auction, his “Peach Blossom Shallows” achieved a notable RMB 16.25 million in this latest auction. By contrast, back in 2011, his “Brilliant Peach Blossoms” was estimated at only RMB 2.2 to 3.2 million but eventually sold for RMB 3.45 million.
Zhou’s signature works, besides the “Peach Blossom” series, include the “Green Dog” series, created after his studies in Germany. These paintings explore the relationship between humans and nature, depicting the vibrancy and fragility of life with tension-filled compositions. The “Green Dog” series, inspired by his beloved dog Heigen, uses the striking imagery of a green-painted dog to create a surreal symbol reflecting modern isolation and interpersonal dangers. However, the “Green Dog” series generally commands lower auction prices than the “Peach Blossom” series. The “Green Dog” works are more influenced by Western modern art, particularly expressionism and surrealism, while the “Peach Blossom” series is deeply rooted in traditional Chinese cultural symbolism, such as the traditional associations of peach blossoms with love, hope, and renewal. This profound cultural symbolism and emotional resonance likely give the “Peach Blossom” series a higher market valuation.
As for Zhou’s early work “Spring is Coming,” its appeal to collectors lies not only in its depiction of Tibetan life but also in its profound reflection on the social transformations and cultural identity of that time. The painting, through its portrayal of Tibetan culture, conveys deep humanistic care and a pursuit of idealism—a quality highly praised by art historians and critics. The 1980s marked a significant period of social and cultural transition in China, and this painting captures an important historical moment in contemporary Chinese art, symbolizing not just the arrival of spring in the painting but also a new spring in art creation.
Zhang Xiaogang’s art, on the other hand, is distinctive for its critical reflection on history. His works, particularly his “Bloodline” series, critically examine the tension between social collectivism and individual identity through the portrayal of individuals within specific historical contexts. These works often depict a sense of powerlessness and alienation in the face of historical and social pressures. Through the use of red lines and other symbolic elements, Zhang explores the constraints and conflicts within familial relationships, as well as the struggles and resistance of individuals under social pressure. Zhang Xiaogang is highly regarded not only in China but also internationally. His works have been exhibited in major museums and art exhibitions worldwide, including the Museum of Modern Art (MoMA) in New York and the Tate Modern in London. This broad international exposure and recognition further affirm the uniqueness and artistic value of his works.
Although Zhang Xiaogang’s works may not carry the same epoch-defining significance as Zhou Chunya’s, they command high prices in the art market due to their exceptional artistic expression, visual language, international recognition, and cultural resonance. Zhang’s art has the ability to transcend cultural boundaries and evoke emotional responses from audiences worldwide. His exploration of family and personal identity speaks to universal human experiences. By delving deeply into history and reality, Zhang’s work resonates with viewers and provokes thought, enhancing the emotional and intellectual value of his art.
Ultra-Contemporary Painters
As a representative figure among the post-’75 generation of Chinese ultra-contemporary artists, Huang Yuxing’s work stands out in the contemporary art market for its distinctiveness and allure. Renowned for his signature use of fluorescent colors, Huang’s palette creates a visually striking and modern aesthetic that captivates viewers. His artwork often employs a microscopic perspective, magnifying details to explore broader themes and concepts.
Huang’s compositions frequently feature natural elements such as bubbles, rivers, trees, and treasures, which are freely arranged across the canvas to form complex visual layers. This approach has paved the way for a new realm of avant-garde art that resonates with a new generation of collectors. His works consistently break records at auctions, particularly among his contemporaries who explore similar themes.
Huang’s innovative style appeals especially to collectors who are eager to embrace artistic innovation and seek out unique visual experiences, particularly among the younger generation. These collectors, both in China and internationally, often have an open-minded approach to traditional art and are keen to explore and collect works that reflect modern aesthetics and contemporary themes.
The Fluctuating Market Value and Speculation
The second highest-priced artwork in the auction came from the controversial Chinese traditional painter Cui Ruzhuo. Born in Beijing in 1944, Cui studied under the esteemed master Li Kuchan. At the age of 37, he emigrated to the United States, eventually becoming an American citizen. Cui Ruzhuo’s works have frequently commanded prices exceeding hundreds of millions of yuan at auctions, establishing him as one of the most expensive living artists. This phenomenon underscores the perceived scarcity and value of his pieces in the art market.
However, in a 2023 auction at Beijing Poly, one of Cui’s paintings sold for just 85,000 yuan—a sharp contrast to his previous high-selling records. This significant drop in price suggests that the earlier exorbitant prices of his works might have been artificially inflated, possibly reflecting a speculative bubble driven by market manipulation. Consequently, Cui Ruzhuo’s status as one of the most expensive living artists has been called into question.
Yet, in the 2024 spring auction, one of his works still managed to fetch 13.8 million yuan. This could be attributed to some investors’ belief that, despite the recent downturn in his market position, the historical high prices of his works indicate potential for future returns. In the art market, especially in the realm of contemporary art, short-term profit seekers may push up prices of certain artists’ works, often driven by speculation rather than intrinsic artistic value. If there is a deliberate effort to create buzz or hype around an artist’s work, it can attract uninformed investors, further inflating prices.
When considering art investments in China, it is crucial to understand the complexities and potential risks of the market. Rational investment decisions should be based on a thorough understanding of the artwork itself, the artist’s background, and the dynamics of the market.
The Resilience of China’s Art Market
According to Art Basel, in 2023, China surpassed the United Kingdom to become the second-largest art market globally, with its market share rising to 19%. The Chinese art market saw a 9% growth in 2023, reaching an estimated value of $12.2 billion.[1] Data from Artron.net, a prominent online art auction platform in China, indicates that the total auction sales of the top seven major auction houses in 2023 amounted to $4.9 billion.
The strong rebound in the art auction market in 2023 was largely driven by the easing of COVID-19 restrictions and a surge in activity during the first half of the year. However, the pace of sales slowed in the second half of the year, likely influenced by the broader economic slowdown in mainland China and the ongoing downturn in the real estate market.
In China, the real estate market is a critical asset class for many high-net-worth individuals and investors. When the real estate market struggles, it can affect these investors’ wealth and confidence, which in turn impacts their ability to invest in and purchase art. Additionally, a sluggish real estate market can lead to tighter liquidity, as investors may find it challenging to liquidate properties for cash. This liquidity squeeze could reduce the disposable funds available for art purchases at auctions.
Economic growth is a key driver of the art market’s expansion in China. Although China’s economic growth slowed in 2023, future economic policy adjustments and structural reforms could spark a new wave of growth. If economic growth resumes, it could enhance the wealth levels of high-net-worth individuals, thereby boosting their investment in art. The real estate market holds significant importance in wealth accumulation in China. A prolonged downturn in this sector may lead to reduced wealth and liquidity for high-net-worth individuals, thus restraining their ability to invest in art. However, if the real estate market recovers, it could free up more funds for the art market.
Moreover, as younger collectors increasingly become the driving force in the market, their growing interest in ultra-contemporary art could further stimulate demand.
[1] The Art Basel and UBS Global Art Market Report 2024, “The Art Market Remains Resilient in 2023 Despite a Slowdown in Sales,” Art Basel, accessed August 27, 2024, https://www.artbasel.com/stories/the-art-market-remains-resilient-in-2023–despite-a-slowdown-in-sales.