Sohu’s Exclusive Interview with Board Member of XiLing Auction Company Hu Xilin

Board Member of XiLing Auction Company  Mr.Hu Xilin

Sohu: Why were the art auctions both in China and other countries so attractive to enterprisers in recent years?
Hu Xilin: Simply speaking, there are three major reasons: the charisma of art, of culture, and the appreciation value of the artwork. Of course, it refers to those classical works.

Sohu: Among the bidders, what was the percentage of Chinese enterprisers? And where are they mainly from?
Mr. Hu: I do not have specific statistics, but I would say a lot, and most of them from Jiangsu Province, Zhejiang Province, and Shanghai. The situation in mainland China now is similar to that of Taiwan. For example, members of Qing Wan Society of Taiwan are mainly wealthy enterprisers and collectors with cultural ambition.

Sohu: Some people believe that Chinese enterprisers started dumping money into the art market. What do you think? If they did, where did they get the confidence and motivation?
Mr. Hu: I do not think “dump money” is a proper expression to describe the investment fever of the art market. Meanwhile, the appearance of few one-hundred-million auction items does not mean that the investment is reckless. It is true that few bidders might show impetuosity in the auction room. Generally speaking, however, most bidders would place a bid according to his/her capability, which means that Chinese art market is getting into the right track. In other words, bidders only buy items they can afford. As a matter of fact, purchasing artwork is not a consumption behavior, but a transformation of the asset form. In this sense, it is either collection behavior or investment behavior.

Sohu: In today’s art market, is it impossible to get valuable artwork with low price?
Mr. Hu: There is no doubt that the price of the artwork is soaring, but it does not mean that you cannot get precious works with reasonable price. In the past, when you spent 100 yuan in getting a piece of artwork which was worth 10,000 yuan, you would think that you took an advantage. Today, a piece of artwork that is worth one million yuan may cost you 100,000 yuan.6 Some people may not think that you take an advantage, but I would say that you do. And you need more courage to take such an advantage. Fewer opportunities do not mean none. It just requires more knowledge and bold vision.

Sohu: Did enterprisers’ collection behavior help the development of the art market?
Mr. Hu: Absolutely. It not only helped with its development, but also facilitated the protection of relics and the artwork. This is also the social responsibility and comprehensive quality of collectors.

Sohu: Did the entrance of financial capital into the art market disturb practitioners? Is there any new risk in the future?
Mr. Hu: I do not know what the disturbance is, I am afraid that I can not answer this question. But for your last question, my answer would be yes. I have already talked about it on several occasions. I said that the price of artwork would change with the economy. Any ups and downs would be understandable.