Confidence in the Chinese contemporary art market declines 35% as the auction market slows down.
Confidence in the Chinese contemporary art market looks increasingly fragile as the ArtTactic Chinese Art Market Confidence Indicator drops 35% from May 2012. The overall Confidence Indicator is now standing at 49, down from 76.
This is the first time the Confidence Indicator has fallen into negative territory since the launch in February 2009. A reading of 49 (Indicator level below 50), means that the current sentiment in the Chinese contemporary art market is now split evenly between experts that remain positive about the market and those that feel increasingly pessimistic about the current market situation.
However, this sudden dip in confidence could be short-lived, as the Expectation Indicator (current reading 58) sits 44% above the Current Indicator (reading of 40), which signals that the respondents are more positive about the next 6 months than they are today. It is clear that the outcome of the auctions in Hong Kong and Beijing later this month and December will set the tone and direction for the market next year.
Despite the negative trend in the market, the survey respondents remain highly positive (short- and long-term outlook) around a cluster of artists such as: Zhang Peili, Yang Fudong, Cai Guoqiang, Xu Bing, Song Dong, Xu Zhen, Zhang Xiaogang, Ai Weiwei, Zhan Wang, Zeng Fanzhi,Liu Xiaodong, Wang Xingwei, Qiu Zhijie, Liu Wei (B. 1972), Zhang Huan and Lin Tianmiao.