Many insiders predicted that art market affected by world economic ebb and European mortgage crisis would face a slump of disastrous proportions, however, the market power of Chinese artwork is still positive based on Beijing Art Fairs, Shenzhen Special Zone Daily reported.

Art market in China is the third investment channel following real estate industry and stock market, and it is considered as a “warm harbor”. With the low ebb of world economy, the fast development of Chinese art market has attracted more and more attention. Zhao Xianglong, manager of Huachen Auctions, Beijing, emphasizes that now is the exact time to invest art for market bubbles are the smallest, indicating that the market is in most robust and safest period.

Auction market is still hot. The sale report released by China Association of Auctioneers reveals that in last 6 months the total sale reached 172.9 billion Rmb, reduced by 43.1% compared to 2011 the same period.

Although the uncertainty of international economic situation, the confidence of foreign art investors is affected, investors should be cautious. Fortunately, Chinese art investment market has big potential, and at a rising stage.

Art investment and collection is expected to return to be rational. We cannot deny the fast development of Chinese art market, but it is problematic, such as the lag of policies and laws, the cluster of trading loophole, and the severe faith crisis. Since last year, the State Council has begun to rectify the controversial transaction mode of “art share change”, and from this April on, tax inspection action was taken.

In Wu Zhengtian’s point of view, although the total number of art sale has dropped some, with the hot money reduction, collectors and investors will make moves rationally. Truly valuable art can finally obtain market recognition and appreciation. Art market will be refreshed after the adjustment period.

The secondary market adjustment will make some investment collectors go back to the primary market track. Only the primary and secondary art market can get balanced, can the Chinese art market be in more perfect health.

(Source from Shenzhen Special Zone Daily, translated by Liu Zhenghua).