Tag Archives: money

Bilateral Trade In Chinese RMB Coming To Hong Kong

China And Hong Kong Get Ready To Begin Bilateral Trade Scheme, Announced Last December. What Will It Mean For Holders Of Portable Chinese Assets Like Art?

HONGKONG

The internationalization of the RMB could be a huge plus for holders of portable Chinese assets in coming years. Photo © Reuters

The internationalization of the Chinese yuan has hit a major milestone, as China’s Central Bank Governor Zhou Xiaochuan, and Joseph Yam, chief executive of the Hong Kong Monetary Authority, today signed a memorandum in Hong Kong to set off bilateral trade that can be settled in Chinese yuan rather than Hong Kong or U.S. dollars. The move, which follows similar “currency swap” agreements signed by China and Argentina, Malaysia, and South Korea in recent months, illustrates the urgency with which China’s Central Bank is looking to globalize China’s currency. While none of this is really “new” to China-watchers, the importance of this story — and the story of China’s rapidly-internationalizing currency — is in what it means for investors who have “bought into” China. While it won’t mean much for holders of Chinese real estate or stocks, the real story here is in portable goods, an area which we have covered in detail several times before. With the globalization of the RMB comes a revaluation of portable goods (which can be carried across borders and converted into alternate currencies).

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Ravenel’s 10th Anniversary Spring Auction Of Asian Art Brings In $6.5 Million

Chinese Buyers Fill The Room At Taiwanese Auction House’s Spring Asian Art Sale

Chinese artist Wang Huaiqing's 'Flying Apsaras' brought in more than $1.3 million at this weekend's Ravenel auction in Taipei

Chinese artist Wang Huaiqing's 'Flying Apsaras' brought in more than $1.3 million at this weekend's Ravenel auction in Taipei

While the auction market has been somewhat sluggish this year — despite good showings in western markets over the last few months — the recent buzz building in Hong Kong, the mainland, and Taiwan recently is starting to get more attention. After last month’s hugely successful HK09 Festival in Hong Kong, where western and Asian artists were exhibited and sold briskly, there have been a rash of sales from home-grown auction houses like the mainland’s Poly and Guardian and Taiwan’s Ravenel, and the surprising sales at these auctions to mainland and Greater China collectors have stunned some onlookers, who had underestimated the motivation of these New Collectors. Going with this trend, Ravenel’s weekend sale of modern and contemporary Asian art in Taipei was both the company’s biggest sale to date and a huge success for Asian art auctions in general.

The sale, which all told brought in $6.5 million in sales, with the top lot going for $1.3 million, has positioned the 10-year-old Ravenel as one of the top Asian auction houses. With prices having become somewhat more affordable as a result of the global economic slowdown, we have seen Chinese and Asian art collectors step up to take their place among major global art buyers, and the buying demographic of the Taipei sale — which was predominantly populated by local and mainland collectors — goes to show that this emerging group of collectors will become increasingly influential in coming auctions, both in the region and globally.

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