Why Hong Kong is now the world’s second-largest jewellery auction hub
When it comes to jewellery auctions, Hong Kong has surpassed New York and is now on a par with Geneva
Strong demand from confident high-net-worth individuals from mainland China, coupled with greater knowledge of upscale jewellery’s investment value, is sustaining the positive mood at Hong Kong’s jewellery auctions.
Bidding at these auctions has helped auctioneers achieve record prices. At Sotheby’s Spring 2017 Sale in Hong Kong, “The Pink Star”, now the CTF Pink Star, a 59.6ct fancy vivid-pink, internally flawless diamond, went to jeweller Chow Tai Fook for a world-record
HK$553 million.
The “Ratnaraj Ruby”, an exceptional 10.05ct gem mined in the famed Mogok Valley in Myanmar, sold for HK$78.94 million at Christie’s Hong Kong sale last autumn. At more than US$1 million a carat, it was the third-highest price per carat ever paid for a ruby. Last October, a pair of D-colour, internally flawless type IIA round diamonds, of slightly more than 30ct each, fetched a record HK$82.6 million at Poly Auction Hong Kong.
The CTF Pink Star and the top 10 lots from Sotheby’s Hong Kong’s Magnificent Jewels and Jadeite Sale in April were all bought by Asian buyers, says Quek Chin Yeow, Sotheby’s deputy chairman of Asia and chairman of international jewellery, Asia. “The remarkable results achieved this season are a testament to the Asian market’s buoyancy.”
Thanks to the participation of mainland buyers at Hong Kong auctions, the city has surpassed New York as the world’s second-largest jewellery auction hub and is now on a par with Geneva. To tap the rising demand for jewellery and arts, mainland-headquartered auction houses, such as Poly Auction and China Guardian, have opened Hong Kong branches, competing with established international houses, Sotheby’s, Christie’s and Bonhams. The presence of mainland auctioneers has consolidated Hong Kong’s status.
And the reverse is also noteworthy. Companies such as Tiancheng International Auctioneer have offices in top-tier cities in mainland China while hosting auctions in Hong Kong.
Beijing’s move to tighten control over capital outflows seems to have had limited impact on the enthusiasm for high-end jewellery, particularly pieces with top-grade diamonds and coloured gemstones. Many continue to buy rare pieces to diversify their investment portfolios amid a volatile global economy.