On the afternoon of June 3, 2007, Taipei Fubon International Conference Center was a beehive of activity. It was not another technology fair or comic book festival, but a buzzing excitement over art at auction. Buyers surveyed the pieces on offer at the 20th & 21st Century Chinese Art auction organized by Ravenel Art Group, one of Taiwan's leading auction houses, and the bidding was intense. Total sales reached NT$562 million (US$17 million), setting a new record for an art auction in Taiwan.
A work by Zao Wou-ki, a renowned Chinese painter who has lived in Paris since 1948, fetched NT$118 million (US$3.6 million), the highest sum ever paid for a painting at auction in Taiwan. The oil painting, once held by New York art dealer Pierre Matisse, son of the Fauvist master Henri Matisse, had been estimated to be valued between NT$58 and $90 million (US$1.8 to $2.7 million). Meanwhile, a work by the famous Taiwanese sculptor Ju Ming sold for NT$17.4 million (US$527,000), compared with an estimate of NT$11 million (US$333,000). Three other bronze sculptures also sold at higher-than-expected prices.
As the Asian art market matures, Taiwan is seeing its own renaissance of art collecting. Buyers are becoming more sophisticated and their collections ever more valuable. "In our 25 years of operation in Taiwan, we have seen the number of Taiwanese art collectors and their procurements rising steadily," says Winnie Chang, managing director of Sotheby's Taiwan. "Their pockets are deeper than we've imagined. They can already match their US and European competitors."
Sotheby's, which does not currently hold auctions in Taiwan, has seen Taiwanese connoisseurs snapping up collections at auction in places like Hong Kong and Shanghai. Chang notes Taiwanese connoisseurs of such things as Chinese ceramics have achieved a considerable reputation in the global art market.
Taiwanese buyers are also interested in a diverse body of work. There are collectors of classic works by famous Taiwanese painters like Yang San-lang, Liao Chi-chun and Chen Cheng-po. Chinese artists like Zao Wou-ki, San Yu and Lin Fengmian are also popular. And Taiwanese investors have also purchased works by famous Western artists such as Pablo Picasso, Claude Monet and Henry Moore.
Chang believes that the market has largely vindicated Taiwanese collectors. "The track record proves that their perspectives are largely correct," she says. "I do admire their acumen."
As the pockets of local collectors have deepened and interest has blossomed, auction houses in Taiwan are meeting the demand with local auctions. Ravenel Art Group opened in 1999 with the support of Drouot, an auction house with a 400-year history in France. Ravenel, which focuses on oil painting, has enjoyed 20 to 30 percent annual growth over the last three years and set up a branch in Beijing this year.
"My goals at Ravenel are to introduce cultural traditions from Europe, synchronize art with investment and promote contemporary art," says Clara Kuo, president of Ravenel. "I like to help steer collectors toward pieces that they enjoy aesthetically but also maintain, if not increase, the value of their collection over time."
Sotheby's does not hold auctions in Taiwan, focusing instead on sourcing artworks and other collectible items-and providing advice to Taiwanese buyers. (Courtesy of Sotheby's Taiwan)
Kuo attempts to create both an investment opportunity and a practical setting for art to play a role in the daily lives of her clients. She will arrange for interior designers, for example, to visit the houses of clients to help arrange for lighting that can produce the best effect for the display of a new acquisition. "It's my ideal that my clients can gain joy from their collectibles to enrich their lives," says Kuo. "And when they intend to sell them, we arrange for the sales. This way we create a win-win situation for both the auction house and collectors."
Kuo has used some innovative strategies to encourage collecting in Taiwan. For example, she established a collaborative acquisition fund that requires an annual investment of NT$10 million (US$303,000) per client. This approach is modeled after a traditional Taiwanese collective investment club, known as a hui, and creates excitement among investors and allows them to make purchases that would be out of their reach otherwise.
Kuo is well aware that the art market thrives on knowledge and experience. She attempts to act as a bridge between the local market and collectors from abroad and to facilitate foreign purchases by Taiwanese collectors. Ravenel also publishes Art & Investment magazine to guide investors and collectors through international trends and markets. "Buyers shouldn't merely check the dollar value of the art pieces put up for auction," she warns. "They need to peer into the background and context and also examine how they themselves feel about the work. Only then does the market mature and speculation diminish."
A Maturing Market
Chen Pi-chen, chairman of Ching Shiun International Auctions, Taiwan's oldest auction house, says Taiwan's art market has become increasingly dynamic. She attributes this in part to the formation of an open and fair transaction environment used by local auction houses that reassures investors and sellers. "Local collectors are now more willing to put their collectibles up for auction due to the exercise of the auction mechanism and transparent market prices," she says.
Ching Shiun holds previews in Taipei, as well as in Beijing, Shanghai and Hong Kong to increase the exposure of its auction items. (Photo by Chang Su-ching)
The increased activity is indicated in the company's growing sales percentages. The percentage of items sold totaled 94 percent in 2007. In 2006, the rate was 90 percent, in 2005, 87 percent, and in 2004, 76 percent.
Overall sales totals are also increasing, reflecting the growing demand for art acquisitions among private collectors and their willingness to spend more on Asian art. The auction house's June 6 spring auction resulted in a total turnover of NT$250 million (US$7.6 million), marking a highpoint for the auction house.
At the auction, Ju Ming's sculptures again proved popular. A bronze piece called Single Whip from his Taichi series sold for NT$38 million (US$1.2 million), considerably higher than the estimated value of NT$18 million (US$545,000). A watercolor, La Vie en Roses, by Chinese artist San Yu, reached a closing bid of NT$1.3 million (US$39,000), after climbing from NT$330,000 (US$10,000).
Chen believes that part of the growing interest results from the entry of younger Taiwanese buyers, many of whom had been educated overseas and returned to Taiwan to take over family businesses. She also notes that their tastes are diverse, ranging from traditional and contemporary artwork to animation and digital image works.
A Fertile Environment
Taiwan's art collectors have grown along with the economy. After decades of growth, new wealth created the means to achieve the prestige of art collecting. But Taiwanese collectors had not only a fertile economic environment but also a tradition of art appreciation and international exposure.
Winnie Chang of Sotheby's Taiwan points out that the National Palace Museum in Taipei has provided residents with the opportunity to appreciate the world's finest collection of Chinese art objects. The treasures of the National Palace Museum, which include the personal art collections of China's emperors, provide a rich source of reference for collectors to examine the finest examples of ancient Chinese arts. Aside, from this unique repository, modern fine arts museums and galleries have sprung up all over Taiwan. "Taiwanese collectors have the knowledge and insight to procure top-notch artwork," says Chang. "They travel extensively to visit museums the world over and have close relationships with international collectors. These factors have shaped their aesthetic tastes and increased their opportunities to secure fine pieces."
Sotheby's Taiwan, which was set up in 1981, today acts primarily to facilitate art purchases and assist collectors in Taiwan and foreign collectors seeking purchases from the Taiwanese market. "We help Taiwanese buyers find information on the lots they might bid on and give them expert advice on any questions they might have," says Chang. "We also arrange bidding via telephone or arrange for on-site participation in Hong Kong or other auctions," Chang explains. "We also try to find out which objects are owned by whom and assist foreign specialists to come to Taiwan to find things."
Sotheby's Taiwan also locates items such as precious jewelry, fine wine and collectible instruments that are found in Taiwan. The blueblood auction house provides an invaluable repository of advice and experience. In Taiwan, experts also introduce to international buyers the uniqueness of Taiwan's own artists, such as Chen Cheng-po, Yang San-lang and Shi De-jin, and help bring newer artists to the attention of the global market place. She points to the example of Lin Ming-hung, a young artist who makes use of traditional flower patterns once used on duvet covers.
Chen Pi-chen of Ching Shiun says works by several Chinese artists, including Zao Wou-ki, Chu Teh-chun, Zhang Xiao-gang and Wang Guang-yi, have been hot-ticket items for international collectors in recent years. She believes that the future for Taiwan's painters is to achieve greater access to international markets, where Asian art in general and Chinese art in particular are fetching astonishing prices. Chen points out that this is due partly to the liberalization of China's art market and the growing capital of Chinese collectors, as well as the spike of interest among Western collectors.
Her company organizes previews for its auctions in Beijing, Shanghai and Hong Kong, and has set up offices in Beijing and New York to tap into this demand. "We're expanding overseas in a drive to let our auction items gain more exposure," she explains. "Hopefully, our efforts can further invigorate Taiwan's art market."
Write to Kelly Her at kelly@mail.gio.gov.tw