How Hong Kong Became One Of The Biggest Art Markets In The World

Over the last two decades Hong Kong has squarely established itself as one of the world’s largest markets for contemporary art. Thanks to the ‘Chinese Art Explosion’ the vibrant island has undergone a decade of exponential growth in the contemporary art marketplace.

Prior to 2004, Hong Kong’s contemporary art market barely existed, consisting mostly of tourists searching for cheaper prices on fine art and antiques with little interest in contemporary artists born post-1945. During the early 2000s, China and Hong Kong’s fine art sales consistently amassed to less than 1 billion per annum, severely trailing behind the leading international art markets of the US and the UK. There was little talk of Hong Kong as a ‘hub’ or an ‘epicentre’ for contemporary art.

Yet today Hong Kong boasts one of the largest markets in the world, second only to the US as one of the largest international marketplaces for art buyers and sellers.

How did Hong Kong become such a huge art market?

One of the reasons for Hong Kong’s emergence was the lack of goods or services tax, export and import tariffs, local sales and value added tax; as well as corporate taxes being as low as 6% for commercial galleries.

This incentivised artists, galleries, auction houses, and investors to establish themselves in the city. By the early 2010s, galleries which would go on to enjoy international acclaim began setting themselves up in Hong Kong.

Noted gallerist Pearl Lam was amongst the first. Pearl Lam’s galleries focused extensively on the promotion of Chinese contemporary artists, launching in Hong Kong in 2005. Inspired by pioneers such as Pearl Lam, Catherine Kwai’s Kwai Fung Hin Art Gallery began to turn away from traditional Western art, instead focusing on contemporary Chinese art from the early 2000s.

Then in 2011 industry giant Gargosian opened its first ever Asian gallery in Hong Kong - with industry giant White Cube contemporary art gallery following suit, opening its first gallery outside of London in Hong Kong. A year on, and Hong Kong hosted its first ever edition of the Art Basel: the world’s leading art platform and fair.

The increasing presence of galleries and gallerists catapulted Hong Kong’s art market toward international prestige. The city became the chief contact centre within Asia for buyers and sellers.

The government also gave a lending hand

In 2009 Hong Kong committed to producing infrastructure for their growing contemporary art market when they met with the world’s leading architecture firm, Norman Foster and Partners to execute a master plan for the West Kowloon cultural district.

The largest cultural initiative of its kind in the world, the project would go on to establish a major centre for music, performing and visual arts, with over seventeen new cultural and artistic venues. This project was fundamental in raising the cultural capital of the city to reflect their growing presence within the global art market.

Hong Kong’s contemporary art market in 2023

art market in 2023The result of Hong Kong’s commitment to infrastructure and the influx of gallerists has been spectacular for the city, and the trend toward global dominance has continued. Hong Kong’s global art market share rose from 17.5% in 2019 to 23.2% in 2020, overtaking London for the first time ever.

Art Basel returned to Hong Kong in 2023, attracting over 86,000 visitors over the five-day period of the show, with a total of 177 galleries participating in the international event, an increase of 47 from the previous year.

Hong Kong has cemented its role as Asia’s primary hub for contemporary art. And in this age of digital transformation and Instagram artists, it will be interesting to see how the market evolves to grow its status to become the world’s number one.