The Role of Auction Houses within Emerging Art Market Ecosystems

Over the last decades, Hong Kong has experienced unprecedented growth within the Chinese art market until it ranked second among the world’s leading art trading hubs in 2021, after New York and surprisingly overtaking London. Going back in time, Paris became the world capital of art in the 20th century thanks to the emergence of art dealers in the city and their global connections (White and White, 1965). Similarly, while during the 1970s there were few art galleries in Hong Kong, after the opening of the Asian offices by Sotheby’s (1973) and Christie’s (1986), the local art scene started flourishing. New galleries, auction houses, and art fairs were established in the region and the professional networks of the two leading auction houses started growing. Therefore, building on the notion of art market ecosystems proposed by Petterson (2014) and the discourse about auction houses as judgment devices in China (Kharchenkova, 2017), the role of these institutions is studied in a context characterized by specific dynamics and regulations. After a historical overview of the Chinese art market and the key role of Hong Kong, this thesis investigates how the presence and professional relationships of Sotheby’s and Christie’s influenced the emergence of this market hub by exploring their activities and events, especially when carried out in collaboration with other actors. Through a qualitative content analysis of 81 newspaper articles and official publications, this study answers the research question “To what extent have Sotheby’s and Christie’s activities contributed to the transformation of Hong Kong into a global leading art auction market between 2006 and 2021?” The insights contribute to mapping the evolution of Sotheby’s and Christie’s networks in the Chinese art market ecosystem while defining its structure, the type of art that has been sold, and the key institutions that have driven its development over time. The past auction sales carried out by Sotheby’s and Christie’s in Hong Kong as well as the number of galleries, art fairs, auction houses, and other art venues that were established in the region have been analyzed to investigate potential externalities brought by the two leading Western auction houses and to reflect on the uniqueness of the Hong Kong art market.