Hong Kong Sales Give Reasons for Optimism

The Hong Kong sales might not be what they were but recent results point to positive signs in the Asian market. Christie’s, Sotheby’s and Phillips all posted their strongest performance in more than two years in their respective sales, which took place at the end of September.

Phillips, which had a tough time in New York this week, will be relieved that in Hong Kong its performance improved along with its peers. Its sales on September 27-28 scored a C, up from a D in May.

Christie’s made the most noticeable progress: its sales scored a B- in the HENI Auction Index, its second consecutive improvement. There was another consecutive uptick at Sotheby’s, which scored a C+ in its sales last weekend.

The HENI Auction Index is a unique benchmark of auction performance based on 10+ metrics. At first glance, the Hong Kong sales may appear to be disappointing but looking beyond the standard measurements of success, sales totals and sell-through rate, reveals a more nuanced and encouraging picture.

Auction grades

Phillips made a sharp rebound in September from its results in May, with an improvement in sales revenue and increased number of lots partly responsible for the auction house's latest C grade.

The number of new artist auction records also picked up slightly. However, total sales are still 40% below the average of Phillips’ comparable sales in Hong Kong.

The star lot was an untitled 1948 work by the Chinese-French painter Zao Wou-ki, which sold for $364,800, 41% above its low estimate.

Christie’s recent sales saw significantly fewer weak guarantees and irrevocable bids compared to its most recent sales in Hong Kong. There was also an increase in the percentage of works selling above the low estimate: 15 percentage points above the average of comparable sales.

Meanwhile, Sotheby’s results showed strong gains in new artists’ auction records, which doubled compared with its March sales in Hong Kong. Among them was Li Hei Di, a London-based Chinese artist. The artist is represented by Pace gallery, which announced that it is downsizing in Hong Kong a week after the sales there.

Dealers like the auction houses are still face challenging times but the results in the salesrooms suggest it is a glass-half-full moment for the market in Asia.

Methodology: for how the HENI Auction Index classifies sales, see here