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2012

ART2FEEDBRAINS

INDEX FOR CHINESE

CONTEMPORARY ART

4Q 2011

Josep Soler Casanellas

English and Spanish

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INDICE ART2FEEDBRAINS ® ARTE

CONTEMPORANEO CHINO 4Q 2011*

Finaliza el año 2011 con las últimas subastas de noviembre en Hong

Kong por Christies y Sothebys, además de las de Beijing por las casas de

subastas chinas.

Si bien es verdad que el mercado ha sido dominado por el arte moderno

y tradicional chino, llegándose a pagar 57M USD por una obra en tinta de

Baishi Qi, los artistas contemporáneos reconocidos han vuelto a los

precios ante crisis de 2008. Con resultados dispares, pero con un gran

apetito por los trabajos históricos de estos artistas.

Finales de noviembre la crisis de la deuda soberana aumentó y ello se

reflejó en una disminución del apetito de los coleccionistas. Incluso con

ello los precios están a un gran nivel y continúa su potencial de

revalorización. Poco aclararon las subastas de diciembre en China pues

las obras en venta de los grandes artistas eran muy pocas, continuando

el deseo de los coleccionistas por los grandes nombres y menor apetito

por los trabajos del resto de artistas.

El mercado chino de subastas ha confirmado su 1er puesto mundial

representando ya el 39% de las ventas de arte, con un aumento de 6

puntos respecto al 2010 y de un 32% en total. De hecho 10 de los 15

artistas con más ventas son ya chinos. Y 30 de las 100 más altas

adjudicaciones son también chinas.

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De hecho 100€ invertidos en 2006, cinco años después representan

1.597€. En cambio los mismos 100€ invertidos en las bolsas de Europa se

habría evaporado una parte hasta 84€ y si fueran 100USD invertidos en

EEUU solo habríamos obtenido 114 USD.

Invertir en los grandes nombres chinos continúa siendo una inversión

muy rentable. Y seguramente más, después de las palabras de Hu Jintao

inicio 2012 sobre la necesidad de evitar la “westernización” de China.

Palabras que no van a llevar a China por el sendero de la democracia sino

de la censura pero que van a aumentar las compras de arte chino por

chinos y consiguientemente el valor de los artistas chinos. A ello se

añaden las pocas posibilidades de inversión de los chinos con una bolsa

limitada y un mercado inmobiliario cada vez en peor estado.

*Este índice se publicará al finalizar cada sesión de subastas en China y

Hong Kong.

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CHINESE CONTEMPORARY ART INDEX

ART2FEEDBRAINS ® 4Q 2011 * Not be afraid regarding the figures. It’s all like this, whenever stocks stalled or dropped in the period 2004-2011, the Chinese art market grew as a rocket and still alive! Moreover, the market is recovering from the lows of 2008 and 2009. To invest in Chinese contemporary art market will continue to be great opportunity and success in parallel with the increase of China GDP and population healthy. Ends 2011 with the last auction in Hong Kong November by Christies and Sotheby's, in addition to Beijing by Chinese auction houses. While it is true that the market has been dominated by traditional and modern Chinese art, reaching U.S. $ 57M to pay for a work by Qi Baishi in ink, contemporary artists have become known to the prices before the 2008 crisis. With mixed results, but with a big appetite for historical works of these artists. Late November the sovereign debt crisis increased and this was reflected in a decrease in appetite of collectors. Even with that the prices are at a high level and continue its appreciation potential. Little clarified the December auctions in China for sale works of great artists were few, following the desire of collectors for the big names and less appetite for the work of other artists. The auction market in China has confirmed its 1st place worldwide now account for 39% of art sales, an increase of 6 points compared to 2010 and 32% in total. In fact 10 of the 15 best-selling artists are now Chinese. And 30 of the 100 highest awards are also Chinese.

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In fact € 100 invested in 2006, five years later representing € 1,597. In contrast, the same 100 € invested in the stock of Europe would have evaporated some up to 84 € and if they were invested in the U.S. 100USD would have gotten only 114 USD. Investing in Chinese big names continues to be a very profitable investment. And probably more after Hu Jintao's words start 2012 on the need to avoid "westernization" of China. Words will not take China down the path of democracy but of censorship, but they will increase purchases of Chinese art by Chinese and consequently the value of Chinese artists. This is compounded by the limited possibilities of Chinese investment with a limited stock and property market in the worst state ever.

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INDIVIDUAL REPORTS

Cai Guo-Qiang

Fang Lijun

Liu Xiaodong

Liu Ye

Mao Xuhui

Wang Guangyi

Xue Song

Ye Yongqing

Yue Minjun

Zeng Fanzhi

Zhang Xiaogang

Zhong Biao

Zhou Chunya

HOW TO READ THE CHARTS

The values of the charts are masked and are obtained through all the

auction houses available and the prices are without buying premiums.

The black line represents the linear trend.

The red line represents the moving average. It could be different

between artists.

Please read the last page for advices using this information.

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Cai Guo-Qiang

Cai Guo-Qiang is a safe value and the value of his works continues to grow. The small works less than 80x80cm are experiencing a big increase and really interest by collectors. Clearly the rest of his works "normal" around 200x200cm experiencing a moderate increase due his overall value. But his works are already paid more than the previous peak in 2008.

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Fang Lijun His work has experienced a dramatic increase in the last two years, coinciding also with the appearance of works of his most colorful series and works of his first term. He is also one of the artists with less original works on sale.

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Liu Xiaodong The expressionist figure among contemporary artists has also surpassed its pre-crisis assessments, although in the last auction of 2011 prices have weakened.

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Liu Ye The finest between contemporary artists with their child figures is increasingly attracting a greater number of collectors, reaching its small size works great values.

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Mao Xuhui With the appearance of his works from the early days of the series called paternalism in 2011 has reached its higher prices and records. Beating a record his first work appeared at auction priced compared to its most popular series of scissors. This assessment of his early work has continued and has allowed the rest of his works to maintain the rating.

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Wang Guangyi One of the artists with more works in the market. The Chinese contemporary art icon and father of it. The appearance of his early works in 2011 has helped the price of his works to increase considerably. In a more detailed analysis see the difference between the works of his early years that have achieved record and works Great Criticism series that improved prices in the last two years, are far from the record reached in 2008.

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Xue Song When we move away from the "big", collectors' appetite decreases and the values go down. Xue Song with parallel activities in the creation of art funds is one of the most controversial and appears many works in the market. In fact the trend is downward.

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Ye Yongqing One of the historical of the movement of contemporary art in China but has not reached the heights of his colleagues and friends. Their prices are stable to slightly down. We wonder if it will happen as Mao Xuhui moving in the second platoon and then suddenly his initial work has been evaluated several times their recent work.

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Yue Minjun Among the great artists is the only one with prices seems in decline and without recovering part or all of the value lost after 2008. It is also true that there have not been great works on the market in the last year and moreover unlike the others artists with their early works reached records, the early works of Yue Minjun without “the face smiling” did not awake any interest. While normal size works experience a slight increase from the bottom, about 40x40cm small continue to decline in value. It is also true that these ones reached in the boom years an incredibly high value.

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Zeng Fanzhi The HOTTEST artist in the market. However prices have not yet reached pre-crisis struggle collectors for his works, paying fortunes for their small masks (about 100cm). The value of his work is progressive and its higher profile also influenced the rest of his work here I call lines and corresponds to his particular way of strokes in other works that are not masks.

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Zhang Xiaogang In the same situation as Zeng Fanzhi but the market seems to be a little tired of his works, although the value of their works reach very high prices and clearly pre-2000 works are much more valued than the recent. Interest in his work is reflected in that for small pieces, prices remain at 2008 levels with upward trend.

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Zhong Biao Few works appear in the market with mixed success, more appreciated in the West than in China. In fact, recent auctions in Europe and Beijing have returned to Zhong Biao at prices close to before 2008 around 100.000USD.

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Zhou Chunya

One of the major desired by collectors in the case of the series in

question, but clearly their green dogs are the most desired by collectors,

followed by their "blossoms" and farther stones.

Their prices continue to grow. The only fear is that it does invade the

market with too many works that would reduce its price.

In any case, if a collector had bought in the boom before 2008 still would

make money.

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COMMENTS ABOUT INDEX AND US:

After 6 years following the Chinese art market we decided to publish end 2011 our “art2feedbrains index” and individual indexes for most known artists. For each artist there is available a version with more data and more

detailed comments at 10€.

Full version with more information and valuations is available at 50€.

You can write to art2feedbrains@gmail.com asking for details.

CREDITS

Published middle of January 2012

If you like to publish any part of this report, please cite the source:

www.art2feedbrains.com

® Copyright 2012 Compañía servicios empresariales Solca, sl All rights reserved. Any unauthorized use or disclosure is prohibited. This report has been prepared and issued by Compañía servicios empresariales Solca, sl. The information herein was obtained from various sources; we do not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes an offer, or an invitation to make an offer, to buy or sell any works of art related to the artist in this report. This research report is prepared for general circulation and is circulated for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek specialist advice regarding the appropriateness of buying or selling any works of art or the strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Investors should note that income from buying works of art, if any, may fluctuate and that each work of art’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future

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performance. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report.

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