China's economic slump set to hit art auctions in Hong Kong, insiders say

A gloomy economic outlook brought about by China's slump amid the ongoing anti-corruption campaign is set to hit the art market as the autumn auction season kicks off this week.

Art market insiders said fewer mainland buyers were expected in the bidding room and prices of artworks were likely to fall back to a reasonable level.

Key players such as Sotheby's, Bonhams and Poly Auction Hong Kong will be hosting sales from Saturday, coinciding with the opening of art fair Fine Art Asia, which is in its 10th year. This will be followed by the Asia Contemporary Art Show, which opens on October 8.

While Bonhams will host its first sale of modern and contemporary art in the city, Sotheby's Hong Kong is offering 3,909 lots of artworks and luxury items for its autumn sale, which is estimated to fetch HK$2.3 billion. Among the highlights are renowned collector Dr Yip Shing-yiu's collection of Ming dynasty furniture and an imperial portrait of Consort Chunhui by Giuseppe Castiglione, which is expected to fetch more than HK$60 million.

Kevin Ching, chief executive of Sotheby's Asia, said the current economic climate might not be the best time for the art market, compared to 2011, when auctions and private sales in Asia brought in US$1 billion. Sotheby's Hong Kong recorded HK$2.7 billion in its spring sale this year.

Ching said the auction house was "cautiously optimistic" despite China's economic slowdown as "the art market and the economy don't always move [at] the same speed".