Artwork is increasingly being seen as the only asset allocation with long-term, stable and continuous appreciation in China, leading wealthy Chinese individuals to invest in the asset class, as stocks, precious metals and property markets lose their shine. The recent surge of interest from mainland investors has been driven by a growing number of reports that China will soon introduce capital controls for foreign investors. The use of art mortgages to finance purchases is also increasing.
Artwork is increasingly being seen as the only asset allocation with long-term, stable and continuous appreciation in China, leading wealthy Chinese individuals to invest in the asset class, as stocks, precious metals and property markets lose their shine. China became the world's biggest market for art auctions in 2016 with sales totalling about $6.33bn. The use of art mortgages to finance purchases is also increasing.