For Immediate Release
China Daily Gathers Investors and Professionals to Discuss Investment Strategies of Collectibles
HONG KONG, Jan. 19, 2021 – Co-organized by China Daily and Asian Financial Forum, a panel discussion session themed “Assessing Alternative Investments in Art and Wine” was held virtually on Tuesday, Jan. 19, 2021. Investment project owners, private equity firms, investors and professionals from the financial industry joined the event online.
Asian Financial Forum is Asia's premier platform for global leaders in government, finance and business to exchange insights, intelligence as well as business and investment opportunities. The 14th Asian Financial Forum opened today under the theme of “Reshaping World Economic Landscape”. The two-day event, co-organized by the HKSAR government and Hong Kong Trade Development Council, was attended by policymakers, financial experts, business leaders, economists, investors and entrepreneurs. It was the first time the participants signed up for the forum online to examine opportunities and challenges for finance, investment and business in the new global economic landscape.
China Daily and Asian Financial Forum have co-organized the panel discussion for 10 times. This year, the panel discussion was moderated by Dr. DJ Clark, Multimedia Director, China Daily Asia Pacific. Mr. Andy Hei, Founder and Director, Fine Art Asia and Ink Asia, Hong Kong; Dr. Johnny Hon, Founder & Chairman Emeritus, Global Group International Holdings Limited; Mr. Adriano Picinati di Torcello, Director, Advisory & Consulting, Global Art & Finance Coordinator, Deloitte Luxembourg; and Mr. Robert Sleigh, Senior Director and Managing Director – Operations, Sotheby’s Hong Kong Ltd., joined the panel discussion and examined the latest trends to support the expansion of investments in art and wine.
Johnny Hon said wine or art investments can help to lower volatility, especially during times of economic uncertainty. “Looking at 2021, fine wine investments appear to have a firm footing after posting a positive return in 2020 regardless of the range of challenges faced,” he said.
Pointing out that the art industry is encountering challenges amid the COVID-19 pandemic, he said the health crisis created a chaos in the art investment market in 2020. He however pointed out that the pandemic has motivated the art market to make a major technological shift towards the online sphere, and online sales are driving the current market, an evidence that younger generations are becoming keener to collect and invest.
He didn’t recommend rushing to buy art merely as an investment, stressing the importance of gaining appreciation and understanding about what makes a piece of good art because the nature of art investment is a bet.
Andy Hei said there is an advantage to assessing this kind of (art) investment in Hong Kong because of the infrastructure, the law and regulation. For example, importing and exporting art pieces here are tax free and there’s no restriction on it. Also, there is a mature infrastructure when connected to other businesses like insurances, art logistic, art handlers etc.
Regarding holding time of contemporary arts, Andy Hei said it’s better to hold a piece of art as long as possible. Citing his experiences, he said a cycle of peak and bottom in value of an art piece will take 10 years. It may be shortened to 7 to 8 years because of the free flow of information on the internet, but this is the range, according to him.
Talking on art investment, Robert Sleigh said the consideration of historical significance is important. “If they paint the picture, makes the historical story authentic, and really tells the story of what it is. I think that anything of these goes with the artwork is very significant, particularly if it was given from the artist to someone in particular, or was from the artist to the state,” he said.
According to Adriano Picinati di Torcello, there is a number of risks in collectibles investment. He suggested investors to look at a number of issues such as authenticity and counterfeit before investment. The innovation of technology helps to reduce the risks and increase liquidity, he said. Regarding the duration of holding an artwork, he suggested holding it for a longer period. However, the duration of holding the wine depends on how the wine is capable of ageing.
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About China Daily Asia Leadership Roundtable
The China Daily Asia Leadership Roundtable is a by-invitation network of movers and shakers in Asia, providing platforms for focused dialogue, issue investigation and possible collective action on strategic issues relating to Asia’s economic, business and social development. Our aim is to enhance communication and increase mutual understanding between China, Asian and Western countries. Roundtable events are held in major cities across Asia.