Hong Kong art market takes hit from Beijing’s efforts to curb capital outflows
Some galleries at Art Basel report slower business as their wealthy customers – mostly mainland Chinese buyers – are having trouble taking money out of the country
The Hong Kong art market has taken a hit from Beijing’s recent efforts to curb capital outflows, with fewer mainland collectors splashing out on expensive pieces at Art Basel, which ends on Saturday.
While private collectors from more than 70 countries attended the five-day annual art extravaganza, some galleries reported slower business as their wealthy customers – mostly mainland buyers – were having trouble taking money out of the country.
Some mainland buyers said they had to settle for cheaper artworks under the payment limit set by the mainland authorities, but others managed to skirt the measures by using overseas funds.
Wang Songqi, partner at Shanxi-based investment company Kinlyhong Capital, said it took longer for art investment companies to pay their bills, as procedures for foreign investment had become more complicated since late last year, when Beijing launched a set of restrictions to keep money onshore.
“I understand that the authorities want to stop dubious deals aimed at moving money out of the country, but there is also a need for rational and normal investment,” he said.
