Art investments gain ground in Hong Kong amid market volatility, global uncertainty

HONG KONG: As Hong Kong’s stock market shows signs of recovery, a new kind of investment is catching the attention of young and high-net-worth investors alike.

Once seen as a luxury or passion purchase, art is now being included in portfolios as a legitimate asset amid market volatility, global uncertainty and the United States-China trade war.

The global market share of Hong Kong and mainland China’s modern and contemporary art doubled from 7 per cent in 2015 to 14 per cent last year, according to a report released by China Art Market in March.

Julia Hu, managing director for Asia at international auction house Bonhams, told CNA that investor attitudes towards art have evolved significantly in the past decade.

“When I talked to some collectors’ family offices in Hong Kong, maybe 10 years ago, no one considered putting this (in their) portfolio – maybe just (as) a collector because of their personal interest,” she said.

“Now, the family offices, when they set up their portfolio assets … some want to put 10 per cent of their portfolio into art, because of the very special characteristic of art,” she noted, adding that the art market is “resilient” especially during volatile times.

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Some experts believe that as art becomes more affordable and accessible, investors may increasingly turn to it as a financial asset.

While investing in art required millions of dollars in the past, investors can get into the market today with works priced below US$50,000.