Auction House Is Poised to Sell Art in China

Christie’s Is Poised to Auction Art in China

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“Fly,” a painting by Zeng Fanzhi, sold for $5.1 million last May at Christie’s in Hong Kong.

SHANGHAI â€" Christie’s auction house said Tuesday it had been granted a license that would enable it to become the first international auction house to operate independently in China, which has overtaken the United States as the world’s largest art and auction market.

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Detail of “Red Sprig,” a work by Yang Jiechang to be shown at Christie’s in Hong Kong.

The move allows Christie’s to sell directly to buyers from a growing class of wealthy collectors in China, many of whom have been spending vast sums of money in recent years on fine art, wine, watches, jewelry and other items at auctions around the world.

Sotheby’s and Christie’s have been operating in Hong Kong for several decades and have seen their business explode in the city, which is governed separately.

But the world’s two biggest auction houses have long sought greater access to mainland China to cultivate collectors, hold auctions and compete with China’s own formidable auction houses, Beijing Poly International and China Guardian, entities that have recently moved into the ranks of the world’s biggest auction houses.

Last year Sotheby’s formed a joint venture in Beijing with the state-owned Beijing Gehua Cultural Development Group to hold auctions in China. Sotheby’s is the 80 percent owner of that enterprise.

Now Christie’s has signed its own agreement with the City of Shanghai and plans to hold its first auction this fall, although the company said the agreement restricted it from dealing in “cultural relics.” The company can operate throughout China but will be based in Shanghai and pay taxes there.

In a statement Steven P. Murphy, Christie’s chief executive, emphasized how important China is to the auction house’s future.

“In recent years we have seen phenomenal developments take place in the global art market, particularly in China, where the market has grown at an unprecedented rate,” he said. “Today’s announcement further solidifies Christie’s position and commitment in a market which possesses a strong heritage and deep appreciation of art.”

Last year revenue in China’s auction market was estimated at more than $4 billion, down sharply from $9 billion in 2011, when the market was blistering hot. Auction revenue in the United States market was estimated at more than $3 billion in 2012.

But China’s homegrown auction houses have been troubled by fakes, smuggling and longstanding suspicions of price manipulation.

Analysts say Sotheby’s and Christie’s hope to capture a share of the market and compete by pledging higher standards for authenticating and evaluating art and other collectibles.

Sotheby’s joint venture plans to hold an auction in China this year, a spokesman said. It has also begun talks with the organizers of the European Fine Art Fair about holding a similar fair in Beijing.

Christie’s said in a statement that the number of clients from mainland China that now bid at its auctions in various cities was twice what it was in 2008.

“Now Christie’s will be able to engage with our clients in Shanghai in the same way that we have done over many years in London, Paris, New York and Hong Kong,” Mr. Murphy said.

Officials at that auction house, founded in 1766, said the application for the license was filed last year and was approved on March 28.

This article has been revised to reflect the following correction:

Correction: April 9, 2013

An earlier version of this article incorrectly stated that the auction house China Guardian is a state-run business. It is privately owned.

A version of this article appeared in print on April 10, 2013, on page C1 of the New York edition with the headline: Christie’s Is Poised to Auction Art in China.