Chinese Painting and Calligraphy, better quality but fewer lots

In 2019, 151,490 lots were auctioned in China, with 66,106 of them being sold. These figures are down by -14% and -18.4% respectively compared with 2018. The auction turnover totaled $4.1 billion in China, down by -8.5%. In the rest of the world, for reference, 730,800 artworks were auctioned in 2019, with 483,500 sold, generating $9.22 billion, down by -16.5%.

Evolution of auction turnover in China

Although the Chinese Auction Art Market continued to go downward this year, both in terms of quantity and turnover, it showed one very important positive signal: the sold rate reached 43.6% in 2019, i.e. +1.7% higher than average for the last seven years. It is due to serious efforts made by the Chinese auction houses. For several years, these have aimed at auctioning higher quality artworks rather than maximizing the number of auctioned lots. This strategy has helped to stabilize confidence on the Chinese Art Market, to strengthen collectors’ trust and by consequence to reduce the unsold rate.

Auctioned lots vs. sold lots in China

In 2019, the Chinese Painting and Calligraphy Art Market gathered 140,600 artworks at auction, among which 59,000 lots were sold, recording a -20% decrease. The turnover was $2.814 billion, down by -13.1%. Finally, the unsold rate reached 58%, lower than the average of 59.2% recorded since 2012.

From 2015 to 2017, the unsold rate was relatively high for Chinese Painting and Calligraphy, especially in 2017, when it reached nearly 70%. Since 2018, the unsold rate has dropped sharply for this segment, which is closely related to the positive measures taken by the Chinese auction houses. The long-term strategy of selecting higher quality artworks has finally met some success. Progressively, this market is facing higher confidence. Moreover, new financial services provided to collectors contribute to increase the demand.

It is worth mentioning that the three lots sold above $25 million this year in Mainland China all belong to the Chinese Painting and Calligraphy sector: Letters (致郭右之二帖卷) by Zhao Mengfu, sold for $38.18 million at China Guardian Beijing; A long and arduous journey (万水千山图) by Li Keran, sold for $29.41 million at Poly Beijing and Pine after rain (初晴) by Pan Tianshou, sold for $29.39 million at China Guardian in Beijing.

High auction prices remained numerous and helped to comfort confidence in the Art Market. However, the middle and the lower-end art markets both declined in 2019: lots below $500,000 recorded a -12.28% decrease in terms of auction turnover.

Auctioned lots vs. sold lots for Chinese Painting and Calligraphy

Auction turnover for Chinese Painting and Calligraphy

In terms of geographical distribution, Beijing, Hong Kong and Guangdong are the top three regions by auction turnover for Chinese Painting and Calligraphy in 2019, which is consistent with the 2018 ranking. The turnover of Chinese Painting and Calligraphy in Beijing in 2019 was $1.467 billion, and $459 million in Hong Kong. The auction market for Chinese Painting and Calligraphy in Guangdong has been on a positive note, recording a turnover of $320 million, rising by +23.75%, despite a -37.8% decrease in sold lots. It is worth noting that the upward trend in Chinese Painting and Calligraphy auction market in the Pearl River Delta Region has become more obvious in 2019, led by the Guangdong province which shows the biggest potential to develop furthermore.