CHINA Trends and Developments Contributed by: Yingzi Liu, Tsaopei Wei, Han Zhou, Peng Lan and Kexin Yan, Hylands Law Firm
Reversion to Value Under Structural Adjustment Looking back from 2026, the Chinese art market has undergone a profound structural adjustment. Accord - ing to the Art Basel and UBS Global Art Market Report 2025, global sales fell by 12% to USD57.5 billion in 2024, while sales in China contracted by 31% to approximately USD8.4 billion. This reduced China’s global market share to 15%, moving it to third position globally. This volatility reflects not only a contraction in total sales but also a significant retreat of specula - tive demand previously driven by capital. As prices for some highly commercialised young artists have corrected – with cases of large-scale works selling at extremely low prices – the market has entered a phase of deep price discovery. However, this systemic stress test provides an oppor - tunity to observe the actual structure of the Chinese market. While speculative capital is exiting, the mar - ket’s focus is shifting toward “blue-chip” works with established historical status. Collector logic is moving away from simple financial returns toward asset secu - rity and cultural identity. This transition indicates that the Chinese market is moving from a volume-driven model to a value-driven one, with a new valuation sys- tem currently under reconstruction. Through analysing these conditions, we have identi - fied key characteristics of the ongoing restructuring of the valuation and credit systems within the Chinese art ecosystem. This report aims to summarise new pat - terns in market stratification and geographic division, providing an analysis of the new cycle in the Chinese art market from the perspectives of legal compliance and practical operations. Geographic Evolution and Regional Division of the Chinese Art Ecosystem Understanding the geographic division of the Chi - nese art market is the first step in formulating an entry strategy. In 2026, structural changes are reshaping the industry’s underlying logic. Hong Kong continues to serve as the asset manage - ment hub linking global and Chinese markets. Its position has been consolidated through institutional resilience despite complex macro environments. With its status as a zero-tariff free port, free flow of for -
eign exchange, and a mature common law system, Hong Kong remains one of the world’s three major art trading centres. The completion of major infra - structure, such as the West Kowloon Cultural District, has provided a foundation for international display and research. International giants like Christie’s and Sotheby’s have established permanent spaces and regional headquarters in prime Hong Kong locations, reflecting long-term confidence in the city as a hub for mainland Chinese buyers’ global asset allocation. Data shows that mainland collectors contribute sig - nificantly to Hong Kong’s auction turnover, making the city an essential springboard for international collect - ing. Meanwhile, the mainland Chinese art ecosystem is expanding toward emerging southern cities. Auc - tion market data shows a clear southward shift, with Shanghai, Hangzhou and Guangzhou now account - ing for nearly 40% of national market share. In the Greater Bay Area, centered around Shenzhen, the collector base is characterised by tech backgrounds and a younger demographic (primarily Millennials and Gen Z). These collectors are highly digitalised and often seek works that align with their personal values. Consequently, the mainland business model is shift - ing from simple art sales toward integrated cultural consumption linked to urban renewal and commercial real estate. Chinese Collector Behaviour and Preferences The influence and purchasing power of high net worth (HNW) female collectors are growing significantly. According to the latest research from UBS and Art Basel, global HNW female collectors spent 46% more on art on average than men in 2024; in mainland Chi - na, this gap was even wider, with female HNW collec - tors spending more than double the average of their male counterparts. This shift has increased the market share of female artists, with the proportion of female artists represented by galleries rising significantly in recent years. Female collectors show a more open attitude toward discovering emerging female talent, and works by female artists have shown price resil - ience and growth potential in the current aesthetic climate.
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