China regains No. 2 status in global art market, report says

China regained its position as the world's second-largest art market in 2023, after the U.S., as robust demand for unsold auction inventory propelled sales.

According to the Art Basel and UBS Global Art Market Report released on Wednesday, China—which includes Hong Kong—surpassed the United Kingdom to take the second spot in the rankings, with sales expected to reach an estimated $12.2 billion, a 9% increase. With $27.2 billion in sales, the United States maintained its top spot despite a 10% decline in value year over year.

The research stated that while rising borrowing rates, inflation, and worldwide instability all had an impact, global sales fell by 4% to $65 billion, with the recovery in China helping to mitigate the overall market decline. Nonetheless, in 2019, the worldwide market was marginally higher than its pre-pandemic level of $64.4 billion.

The relaxation of the zero-COVID limits, which were still in effect in 2022 and resulted in numerous sales and events being postponed, was a major contributing element to China's economic recovery. This led to fervent purchasing in Beijing, a crucial market, while major fairs and shows in Hong Kong resumed their extensive schedules.

The research stated that despite a dip in transaction amounts worldwide, the number of transactions increased by 4% to 39.4 million, indicating a decline in demand from high-net-worth individuals and the greater buoyancy of transactions at lower price points.

The China Guardian sold three of the top 50 pieces in 2023, marking a comeback in activity at Chinese auction houses after years of challenging circumstances during the pandemic. From the late Yuan period, "Inkstone Washing" sold for somewhat less than $40 million.

The remaining two of the top 50 pieces were sold by Poly Auction, and Cui Ruzhuo's 2019 piece "Rafting in Wind and Rain" brought $33.1 million to Beijing Yongle Auction Company.